• Question 1
During the sales order entry process, a ________ is performed to compare the quantity ordered with the standard amounts normally ordered.
• Question 2
Retail stores could send their orders directly to the manufacturer’s sales order system in a format that would eliminate the need for data entry, using
• Question 3
Which of the following poses an internal control problem?
• Question 4
How is credit approval generally handled for established customers with a documented payment history?
• Question 5
A type of business document in which part of the original document is returned to the source for further processing is called a ________ document.
• Question 6
The shipping department at Squishy Things Toy Company follows policies that determine which carrier will deliver orders according to the size, weight, and destination of the shipment. It maintains standing agreements with shippers that specify legal responsibility for the shipment while it is in transit. The terms of the agreements are documented on
• Question 7
To prevent the loss of valuable data in the revenue cycle, internal file labels can be used to
• Question 8
During the sales order entry process, a ________ is performed to verify that each transaction record contains all appropriate data items.
• Question 9
This document is a legal contract that defines responsibility for goods that are in transit.
• Question 10
Two documents usually accompany goods shipped to a customer. What are the two documents?
• Question 11
Matching customer account numbers and inventory item numbers to the numbers in the customer and inventory master files is an example of a
• Question 12
When an ERP is used, it is assumed that there will be increases in efficiency and the effectiveness of the activities related to the revenue cycle. However, what must be in place and functioning well to fully realize these benefits?
• Question 13
What is a typical procedure for processing sales orders from new customers or customers making a purchase that causes their credit limit to be exceeded?
• Question 14
The manager of Callow Youth Clothing was entering an order online from Sad Clown Pajamas. He entered all the items and quantities, completed the checkout and payment process, but the following error message popped up when he tried to exit the site: “Please enter your email address.” This message is likely the result of a
• Question 15
Key differences exist when an integrated Enterprise Resource Planning system (ERP) replaces an existing AIS or legacy system. For example, ________ are more accurate and timely, enabling sales order entry staff to provide customers more accurate information about delivery dates.
• Question 16
A voucher package should include
• Question 17
In the expenditure cycle, good control dictates that expenditures should be paid by check. This may not be feasible when minor purchases are made. To facilitate quick payment for minor purchases, a(n) ________ should be set up and maintained using ________.
• Question 18
A(n) ________ system posts an approved invoice to the vendor account and stores it in an open invoice file until payment is made by check.
• Question 19
Economic Order Quantity (EOQ) includes several variables that must be taken into consideration when calculating the optimal order size. One variable, the costs associated with holding inventory, is referred to as
• Question 20
Procurement cards differ from corporate credit cards in which of the following ways?
• Question 21
Bob Chum is the sales manager at Folding Squid Technologies. At lunch with the company CEO, he proudly announced that he had received a ________ from a client to buy a large quantity of components from Folding Squid.
• Question 22
Duties in the expenditure cycle should be properly segregated to promote internal control. This means that the authorization function is performed by ________, the recording function is performed by ________, and cash handling is performed by the ________.
• Question 23
To accomplish the objectives set forth in the expenditure cycle, a number of key management decisions must be addressed. Which of the decisions below is not
ordinarily found as part of the expenditure cycle?
• Question 24
Evaluated receipt settlement (ERS) approves payment of vendor invoices after reconciling the purchase order and the
• Question 25
The need to place an order for inventory is specified by the
• Question 26
Vendor invoices are approved by the ________, which reports to the ________.
• Question 27
Double-checking the accuracy of an invoice is a control that can help to neutralize a threat in the expenditure cycle. What activity would specifically be associated with this control?
• Question 28
Stepanek Sales and Service provides free coffee to employees. Stepanek arranged with Ingebrigtson’s Joe to deliver as many coffee packages, sugar, creamer, and filters as needed each week. Ingebrigtson’s sends a monthly invoice for Stepanek to pay. This arrangement is best described as a
• Question 29
One of the threats associated with the process and activity of receiving and storing goods is
• Question 30
A surprise count of an imprest petty cash fund should find the total of ________ equal to the amount authorized for the fund.