1. The information systems audit objective that pertains to source data being processed into some form
of output is known as
A) overall security.
B) program development.
C) program modifications.
D) processing. - Answers D) processing.
2. In organizations with at least basic segregation of duties, the credit manager reports to the ________
and the treasurer reports to the ________.
A) controller; vice president of finance
B) treasurer; controller
C) marketing manager; vice president of finance
D) treasurer; vice president of finance - Answers D) treasurer; vice president of finance
4. What is the primary objective of the revenue cycle?
A) to maximize revenue and minimize expense
B) to reduce outstanding accounts receivable balances through increased cash sales
C) to provide the right product in the right place at the right time at the right price
D) to sell as much product as possible and/or to maximize service billings - Answers C) to provide the
right product in the right place at the right time at the right price
3. The revenue cycle is a recurring set of business activities and related information processing
operations associated with providing goods and services to customers and collecting cash in payment for
those sales. The basic activities in the revenue cycle are: order entry soliciting and processing customer
activities filling customer orders and shipping merchandise invoicing customers and maintaining
customer accounts collections the cashier handles remittances and deposits them in the bank; accounts
receivable personnel credits customer accounts for the payments received. - Answers The revenue cycle
is a reoccurring set of business activities and related information processing operations associated with
,providing goods and services to customers and collecting cash in payment for those sales? With whom is
the primary external exchange of information?
5. Which of the following is not a basic activity of the revenue cycle?
A) sales order entry
B) shipping
C) receiving
D) billing - Answers C) receiving
6. When a customer places an order (on account) for a certain product, what should be done before the
order is checked for inventory availability?
A) The customer's available credit should be checked.
B) The sales order should be created and written to a file.
C) Shipping should be notified of an order in process.
D) A picking list should be generated for the warehouse. - Answers A) The customer's available credit
should be checked
7. Responding to customer inquiries and general customer service is an important aspect in the revenue
cycle. Since customer service is so important, software programs have been created to help manage this
function. These special software packages are called
A) EDI systems.
B) POS systems.
C) VMI systems.
D) CRM systems. - Answers D) CRM systems.
8. The best solution for maintaining accurate automated perpetual inventory system is to use
A) closed-loop verification when inventory is received from vendors and recorded.
, B) point of sale devices integrated with inventory records.
C) periodic physical counts to reconcile with perpetual inventory records.
D) RFID tags. - Answers D) RFID tags.
9. Two documents usually accompany goods shipped to a customer. What are the two documents?
A) a bill of lading and an invoice
B) a packing slip and a bill of lading
C) an invoice and a packing slip
D) an invoice and a sales order
9. Two documents usually accompany goods shipped to a customer. What are the two documents?
A) a bill of lading and an invoice
B) a packing slip and a bill of lading
C) an invoice and a packing slip
D) an invoice and a sales order - Answers B) a packing slip and a bill of lading
10. What is the basic document created in the billing process?
A) bill of lading
B) sales order
C) packing list
D) sales invoice - Answers D) sales invoice
11. A company uses the method for tracking accounts receivable where customers pay according to
individual sales invoices. This describes the ________ method.
A) monthly statement