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Exam 10: Salles - Collection Process

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Question 1

Multiple Choice

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Review Later

Which of the following documents is typically associated with the first step in the sales/collection process?

A) Invoice.
B) Order.
C) Check.
D) Remittance advice.

Correct Answer

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Question 2

Multiple Choice

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Review Later

In the sales/collection process, orders should be filled based on:

A) The quantity of inventory on hand.
B) The customer's credit.
C) The potential for future sales.
D) The importance of the customer.

Correct Answer

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B

Question 3

Multiple Choice

Review LaterAdd Note

Web development software would most likely be used to complete which step in the sales/collection process?

As a form of internal control, insuring merchandise is most closely associated with which step in the sales/collection process?

Match each item on the left with the most appropriate item on the right. Do not use any symbol more than once

Premises

Responses

Customer file

Credit approved?

Update customer file

Choose column headings for flowchart

File remittance advice by customer name.

Begin process

No Appronginte symbol

Evaluate customer credit online

Enforce internal controls

Cash register tape

Customer invoice

Premises

Customer file

Credit approved?

Update customer file

Choose column headings for flowchart

File remittance advice by customer name.

Begin process

Evaluate customer credit online

Enforce internal controls

Cash register tape

Customer invoice

Responses

No Appronginte symbol

Show Answer

Correct Answer

Premises

Responses

Customer file

Credit approved?

Update customer file

Choose column headings for flowchart

File remittance advice by customer name.

Begin process

Evaluate customer credit online

Enforce internal controls

Cash register tape

Customer invoice

Premises

Customer file

Credit approved?

Update customer file

Choose column headings for flowchart

File remittance advice by customer name.

Begin process

Evaluate customer credit online

Enforce internal controls

Cash register tape

Customer invoice

Responses

Which of the following internal controls will ensure that fraud does not exist in the sales/collection process: (i) document matching, (ii) separation of duties?

In a company that sells goods and services on credit, which of the following steps in the sales/collection process may be unnecessary?

As part of the sales/collection process, a ___ typically originates inside an organization but does not remain there.

Which of the following internal controls is primarily corrective?

In Porter's value chain, all of the following are associated with infrastructure except:

Porter's value chain comprises ___ activities and ___ activities.

Bonnie makes and sells her own jewelry over the Internet. A customer browses Bonnie's catalog online and fills out a sales order. The sales order is transmitted electronically to Bonnie, who checks her inventory for each item ordered. If the item is on hand, Bonnie packs it securely and ships it to the customer via a common carrier. If the item is not on hand, Bonnie e-mails the client with an expected shipment date; at that point, the customer must agree to wait until the expected shipment date or cancel the order. Bonnie encloses an invoice with all shipped merchandise; the client sends a check directly to Bonnie's bank for deposit. The bank reports all deposits to Bonnie on a weekly basis; Bonnie reconciles her bank account every day. -Create a flowchart that shows the interaction between Bonnie and her client based on the preceding scenario.

The San Gabriel Valley chapter of the Institute of Management Accountants sponsors four computer seminars each year: Access, Excel, PowerPoint and QuickBooks. Participants can sign up for any or all of the seminars; pricing varies with the number of seminars and with the participant's membership and professional status. For example, a student member of the IMA can sign up for one seminar for $30, or all four for $100. A non-member of the IMA, whether a student or not, would pay $50 for one seminar or $150 for all four. Elliot receives registrations via e-mail and collects payment at the beginning of each seminar. -A flowchart of the preceding process would be organized in ___ columns.

In Porter's value chain, "infrastructure" includes: (i) control systems, (ii) company culture.

To promote strong internal control, which of the following documents should be matched prior to billing a customer?

Several risks are paired with potential internal controls in the list below. Place an "X" in the appropriate column to indicate if the internal control addresses (prevents/detects/corrects) the risk with which it is paired.

Which of the following demonstrates the strongest internal control over the sales/collection process?

The San Gabriel Valley chapter of the Institute of Management Accountants sponsors four computer seminars each year: Access, Excel, PowerPoint and QuickBooks. Participants can sign up for any or all of the seminars; pricing varies with the number of seminars and with the participant's membership and professional status. For example, a student member of the IMA can sign up for one seminar for $30, or all four for $100. A non-member of the IMA, whether a student or not, would pay $50 for one seminar or $150 for all four. Elliot receives registrations via e-mail and collects payment at the beginning of each seminar. -A Level Zero data flow diagram of the preceding process would include ___ numbered circles.

Staff at FTG Corporation use a form when taking customer orders. The form could be generated with: (i) relational database software, (ii) web development software.

Which of the following steps in the sales/collection process occurs first?