AC 340 FINAL

The order entry/sales (OE/S) process is part of the process. a. Order to cash b. Purchase to pay c. Human resources d. General ledger/financial reporting

A

A control that can be used to reduce the likelihood of a transposition occurring when an account number is entered into a computer is: a. Check digit verification b. Data encryption c. Preformatted screens d. Reasonableness checks

A

A digital signature is aimed primarily at ensuring which of the following information systems control goals? a. Ensure input validity b. Ensure input completeness c. Ensure efficient employment of resources d. Ensure update completeness

A

A form of fraud in which payments made by one customer are systematically applied to the account of another is called: a. Lapping b. Malfeasance c. ACH d. Aged trial balance

A

An example of a "rejection procedure" is a(n): a. Back order process b. Inventory subroutine c. Customer acknowledgement process d. Sales order processing process

A

An example of the vertical information flows supported by the B/AR/CR process is a(n): a. Accounts receivable aging report b. Customer invoice c. Remittance advice d. General ledger accounts receivable notification

A

In an accounts payable/cash disbursements process, you would expect that "validating" a vendor invoice might include all of the following steps EXECPT: a. Having a copy of the invoice approved by the purchasing manager b. Comparing the invoice with a copy of the purchase order c. Comparing the invoice with a copy of the receiving repot d. Checking the invoice for mathematical accuracy

A

In an organization in which the order entry/sales and billing/accounts receivable/cash receipts (B/AR/CR) processes are separate processes, the B/AR/CR process usually accomplishes all of the following activities EXCEPT: a. Picking goods in the warehouse b. Billing customers c. Manage customer accounts d. Securing payment of customer accounts

A

In the billing process, the control plan of review shipping not billed sales orders (tickler file) helps to ensure: a. Effectiveness of operations (timely billing) b. Efficient employment of resources c. Security of resources d. Input accuracy

A

In the level 0 DFD for an accounts payable/cash disbursement process, a data flow called "vendor invoice" most likely would be sent by the vendor to which of the following processes? a. Establish payable b. Make payment c. Order inventory d. None of the above

A

The OE/S process includes the first four steps in the order-to-sales process. The order of these four steps is a. Pre-sales activities, sales order processing, picking and packing, shipping b. Pre-sales activities, picking and packing, sales order processing, shipping c. Pre-sales activities, picking and packing, shipping, sales order processing d. None of the above

A

The purchasing manager is evaluated by his/her supervisors based on purchasing inventory at the lowest price. Consequently, the purchasing manager knowingly orders materials only based on price. This has resulted in the purchase of inferior quality materials. This improved the purchasing manager's performance evaluation, but had a negative impact on production due to an increase in scrapped materials. This situation is an example of a failure of: a. Goal congruence b. Management perquisites c. Management by exception d. Control theory

A

The purpose of ___ control goals is to ensure that all resources used throughout the business process are being employed in the most productive manner: a. Efficiency b. Effectiveness c. Security d. Input

A

The purpose of ___ control goals is to ensure the successful accomplishment of goals set forth for the operations process under consideration. a. Effectiveness b. Efficiency c. Security d. Input

A

The purpose of input control goals is to ensure a. Input validity, completeness, and accuracy b. Update completeness and accuracy c. Input accuracy d. None of the above

A

The technology that allows information on documents to be converted into machine-related data through a scanner is called a(n): a. OCR b. MICR c. Bar code reader d. Digitizer

A

The typical purchasing process would capture and record data related to the day to day operations of all of the following EXCEPT: a. Shipping b. Buyers c. Receiving d. Purchasing

A

When the sales manager used ZIP code data taken from the customer order forms to plan an advertising campaign, she is using ___ that might be associated with the OE/S process. a. Vertical information flow b. Horizontal information flow c. Both vertical and horizontal d. Neither vertical nor horizontal

A

When the sales-related data are captured in the sales order department and then the information flows to the managers housed in the marketing department, it is an example of a: a. Vertical information flow b. Horizontal information flow c. Both vertical and horizontal information flow d. Neither horizontal nor vertical flow

A

Which control is most effective in contributing to the goal of ensure input accuracy in the billing function? a. Compare input shipping notices to sales order master data b. Batch sequence checks c. Confirm input acceptance d. Review shipping not billed sales orders (tickler file)

A

Which of the following documents represents a formal "contract" between two parties? a. Bill of Lading b. Shipping's inventory notification c. Packing slip d. Customer acknowledgement

A

Which of the following is NOT a programmed edit check? a. Online prompting b. Check digit verification c. Mathematical accuracy check d. Limit checks

A

Which of the following managers is MOST likely to report to the controller? a. Accounts payable department manager b. Cashier c. Purchasing department manager d. Receiving department manager

A

Which of the following process bubbles would you NOT expect to see in the logical DFD for a accounts payable/cash disbursements process? a. Requisition inventory b. Establish payable c. Make payment d. None of the above

A

Which three documents are received in a three-way match? a. Receiving report, purchase order, and vendor invoice b. Shipping notice, purchase order, and sales order c. Purchase requisition, purchase order, and invoice d. Packing slip, sales order, and purchase order

A

____ is intended to allow the use of sophisticated statistical and other analytical software to help an organization's members develop insights about customers, processes, and markets. a. Data mining b. Data entry c. E-commerce module d. Market segmentation

A

_______ systems use the internet to automate and manage purchases and the vendors from which the purchases are made. a. Buy-Side b. Sell-Side c. Customer Exchange d. Mail

A.

A control whose primary purpose is to ensure greater input accuracy is: a. Tickler file b. Preformatted screens c. Confirm input acceptance d. Procedures for rejected inputs

B

A data flow or event that causes a process to begin is called a: a. Tickler b. Trigger c. Document d. Validity check

B

Before a shipping notice is prepared by shipping personnel, they should match the details of which of the following pairs of data flows? a. The picking ticket and a copy of the sales order earlier sent to the shipping from the order entry department b. The completed picking ticket and a copy of the sales order earlier sent to shipping from the order entry department c. A copy of the sales order earlier sent to shipping from the order entry department and the bill of lading d. The completed picking ticket and the bill of lading

B

Data about vendor compliance with the terms of the purchase order normally would reside on the a. Accounts payable master data b. Vendor master data c. Inventory master data d. Warehouse master data

B

Digital signatures addresses all of the following control goals EXCEPT: a. Ensure security of resources b. Ensure input completeness c. Ensure input validity d. Ensure input accuracy

B

In a fraud scheme known as ___, the perpetrator attempts to cover the theft of cash received from customer A by applying cash collected from customer B to A's account, then applying a receipt from C to B's account, and so forth. a. Kiting b. Lapping c. Schmoozing d. Hacking

B

In a logical DFD for billing/accounts receivable/cash receipts (B/AR/CR) process, you would expect that a credit memo would be sent by the B/AR/CR process to the customer from which of the following processes? a. Perform billing b. Manage customer accounts c. Receive payment d. Validate sales order

B

In a purchasing process, once a requirement are determined and a vendor selected, the next step is: a. The purchase requisition b. The purchase order c. Receive goods and services d. A vendor acknowledgement

B

In the columns representing control goals in a control matrix, the coding M-1 means a. A major control plan b. A missing control plan c. Process 1 is missing d. None of the above

B

In the control matrix, the rows represent: a. Control goals of the operations system b. Recommended control plans including present and missing controls c. Control goals of the information system d. Control goals of the management system

B

On which of the following documents is quantity omitted? a. Purchase requisition form b. Blind purchase order c. Purchase order d. Goods receipt

B

Purchase orders are sent to: a. Customers b. Vendors c. Carriers d. Managers

B

The cashier deposits checks in the bank for XYZ Corp. Who should reconcile the bank statement on a regular basis for operational purposes? a. The treasurer b. Internal auditor c. The cashier d. An external auditor

B

The grouping of customers into categories based on key characteristics is called a. Customer relationship management b. Segmentation c. XML d. Web services

B

What document lets the business know there is a pending action? a. Document Design b. Tickler File c. Turnaround Document d. Picking Ticket

B

When the sales order department acknowledges a customer order, it is an example of a: a. Vertical information flow b. Horizontal information flow c. Both vertical and horizontal information flow d. Neither vertical nor horizontal information flow

B

Which fraud scheme is the Billing / AR / CR process can be described as, "robbing Peter to pay Paul?" (Stealing from one to cover the debt of another.) a. Larceny b. Lapping c. Skimming d. Kickbacks

B

Which of the following activities would NOT occur when an inventory manager decides to return merchandise to a vendor? a. The accounts payable department is notified b. Ac credit memorandum is issued to the vendor c. The warehouse is instructed to release the merchandise to the shipping department d. A debit memorandum is prepared

B

Which of the following control plans does not address the control goal of input accuracy? a. Document design b. Written approvals c. Preformatted screens d. Online prompting

B

Which of the following data stores is designed primarily to serve the vertical information needs of the organization rather than the horizontal information flows? a. Inventory master data b. Marketing data c. Sales order master data d. Customer master data

B

Which of the following is NOT an example of a customer self-service system? a. Pay at the pump gasoline station b. Drive-thru lanes at a bank c. Web-based courier tracking system d. Telephone access to credit card balances

B

Which of the following is most commonly associated with the treasure function? a. Recording of event data b. Security of funds c. Reporting of results of business events d. Maintaining accounting records

B

Which of the following reflects a summarization of any numeric data field within the input document or record? a. Reasonableness check or limit check b. document/record hash totals c. Mathematical accuracy check d. Check digit verification

B

Which type of supply chain collaboration includes the vendor replenishing standard merchandise while the buyer manages the replenishment of promotion merchandise? a. Continuous Replenishment (CRP) or Vendor Managed Inventory (VMI) b. Co-Managed Inventory c. Collaborative Forecasting and Replenishment (CFAR) d. Collaborative Planning, Forecasting and Replenishment (CPFR)

B

All of these are operation process goals in a control matrix, EXCEPT... a. Effectiveness b. Efficiency c. Completeness d. Security

C

A control plan that helps ensure the security of resources within the AP/CD process is: a. Requisition confirmation to originating department b. Approve vendor selection c. Independent authorization to make payment d. Independent validation of vendor invoice

C

A document that is used when filling a sales order to authorize the movement of goods from a warehouse to shipping is called a: a. Shipping order b. Packing slip c. Picking ticket d. Blind authorization

C

As discussed in the text, the functions of the billing/accounts receivable/cash receipts process: a. Is identical to those of the order entry/sales process b. Supports the problem-solving processes of marketing managers c. Collects amounts due from customers d. Is unrelated to the functions of the order entry/sales process

C

As used in the text, the term services specifically refers to: a. Items having physical existence and value b. Work performed by employees c. Work performed by outside vendors d. Products normally held for resale

C

At the time that a purchasing process places an order for goods or services, which of the following is typically updated? a. Accounts payable master data b. Receiving report data c. Purchase order data d. General ledger data

C

For payment voucher input validity, which control plan uses records in the AP master data to gives authorization to the cash disbursements computer program to make payment? a. Independent validation of vendor invoices b. Match invoice, purchase order, and receiving report c. Independent authorization to make payment d. Reconcile input and output batch totals

C

Having too many control plans directed at the same control goal is called: a. Control efficiency b. Control effectiveness c. Control redundancy d. Control completeness

C

In a purchasing process, receiving goods, but not a vendor invoice, from a supplier typically results in an update to all of the following data stores EXCEPT the: a. Inventory master data b. Vendor master data c. Accounts payable master data d. Purchase order master data

C

In the level 0 DFD for an accounts payable/cash disbursements process, a data flow called "receiving report" most likely would be sent by the purchasing process to which of following processes? a. Order inventory b. Receive goods and services c. Establish payable d. Make payment

C

The accounts receivable system typically used by utilities is the: a. Pre-billing system b. Open-item system c. Balance-forward system d. Post-billing system

C

The most error prone and inefficient steps in an operations or information process is... a. Report generation b. Master data update c. Data entry d. None of the above

C

The purchasing process receive goods and services normally would be triggered by the data flow: a. Purchase order b. Vendor acknowledgement c. Vendor packing slip d. Purchase requisition

C

The purpose of ___ control goals is to ensure that entity resources are protected from loss, destruction, disclosure, copying, sale, or other misuse... a. Efficiency b. Effectiveness c. Security d. Input

C

The resources for which the purchasing process wants to ensure security for which of the following: a. Purchase order master data b. Inventory c. Both a and b d. None of the above

C

When the accounts payable/cash disbursements process records a payable obligation, the data flow between "validate" invoice and "record payable" is? a. GL payable update b. PO AP notification c. Validated vendor invoice d. Receiving report

C

Which batch total generally has no other purpose than control? a. Dollar totals b. Record counts c. Hash totals d. Item counts

C

Which control plan for the cash receipts function has its primary control goal to ensure security of resources? a. Reconcile bank account regularly b. Enter cash receipts close to where cash is received c. Immediately endorse incoming checks d. One to one checking of deposit slips and checks

C

Which of the following compares manual calculations to computer calculations? a. Reasonableness check or limit check b. Document/record hash totals c. Mathematical accuracy check d. Check digit verification

C

Which of the following is LEAST likely to report (either directly or indirectly) to the VP of finance? a. Controller b. Treasurer c. Shipping department supervisor d. Accounts payable department

C

Which of the following is NOT a method a business could use to accelerate cash receipts? a. Electronic Funds Transfer (ETF) b. Automated Clearing House (ACH) c. Electronic Bill Presentment and Payment (EBPP) d. Lockbox

C

Which of the following is not a potential benefit of supply chain management? a. Lower costs to the customer b. Reduced Inventories c. Reduced customer orders d. Reduced product defects

C

Which of the following is not an issue of public key cryptography? a. Parties must keep private key secret b. Parties need to publish a public key c. Each party needs a new key for every new party that they exchange information with d. Need a method to confirm to whom the public key belongs to

C

Which of the following most likely would be "blinded" on a copy of the purchase order sent to the receiving department? a. Inventory descriptions b. Vendor identification c. Quantities d. Freight terms

C

Which of the following statements related to ERP support for horizontal information flows in the OE/S process is false? a. Once the sales order department releases the order to credit approval, the document would be automatically routed electronically to the credit department and queued for their approval b. Once the shipping department releases the shipment, the information would be entered into the ERP system at the shipping location to record the order as shipped c. An ERP system requires the business to change the information flows of the business process d. The sales order department's response to the customer would be automatically triggered by the ERP system

C

Which of the following statements related to tickler files is false? a. A tickler file is reviewed on a regular basis for items that do not clear the file on a timely basis. b. A tickler file can consist of documents or computer records. c. A tickler file addresses the control goal of update accuracy. d. A tickler file addresses the control goal of input completeness

C

Which type of supply chain collaboration includes the retailed and the manufacturer forecasting demand and scheduling production jointly? a. Continuous Replenishment (CRP) or Vendor Managed Inventory (VMI) b. Co-Managed Inventory c. Collaborative Forecasting and Replenishment (CFAR) d. Collaborative Planning, Forecasting and Replenishment (CPFR)

C

When they are sent to a customer and returned with the payment, remittance advices are examples of: a. Batch control totals b. Computer-prepared documents c. Written approval controls d. Turnaround documents

D

A control that is primary directed at ensuring input validity is: a. Preformatted screens b. Confirm input acceptance c. Online prompting d. Digital signature

D

A remittance advice generally would be recorded in which of the following pairs of data stores? a. Customer master data and accounts receivable master data b. Sales event data and accounts receivable master data c. Accounts receivable adjustments data and accounts receivable master data d. Cash receipts data and accounts receivable master data

D

A sales representative enters the customer's account number and the system retrieves certain data about the customer from master data. This control plan addresses all of the control goals except: a. Ensure efficient employment of resources b. Ensure effectiveness of operations (timeliness) c. Ensure input accuracy d. Ensure update completeness

D

A typical horizontal flows of information in can accounts payable/cash disbursements process might include all of the following EXECPT: a. An invoice is received from a vendor b. The paid voucher is sent to the accounts payable department c. An approved disbursement voucher is sent to the cashier d. A copy of a receiving report is sent to the cashier

D

At the time that an accounts payable/cash disbursements process makes payment for goods or services, the process generally follows which order. Assume her that you prepare the check a. Select and record payments, prepare proposed payments, issue and record disbursements b. Prepared proposed payments, issue and record disbursements, select and record payments c. Issue and record disbursements, select and record payments, prepare proposed payments d. Prepared proposed payments, select and record payments, issue and record disbursements

D

Immediately endorsing incoming checks satisfies the control goal of a. Ensure effectiveness of operations b. Ensure update completeness and accuracy c. Ensure input accuracy d. Ensure security of resources

D

In a control matrix the coding P-1 means a. Process 1 b. Process 1 is present c. Process 1 is missing d. None of the above

D

In an accounts payable/cash disbursements process, a process "make payment" normally would be triggered by the data flow: a. Purchase order b. Vendor acknowledgement c. Vendor packing slip d. Payment due date information

D

Outputs of a purchasing process normally might include all of the following EXCEPT: a. Purchase order b. A purchase order inventory notification sent to the inventory system c. Receiving report d. Vendor invoice

D

The control plan tickler file of payments due, is directed primarily at which of the following control goals? a. Select a vendor who will provide the best quality at the lowest price by the promised delivery date b. Input validity c. Input accuracy d. Input completeness

D

The primary reason that direct entry of sales order data by sales personnel enhances efficiency is because: a. It increases the likelihood of erroneous data being input b. Sales personnel can enter data faster than data entry clerks c. Fewer data items need to be entered by sales personnel d. Sales personnel are familiar with the orders and can input them more quickly

D

The principal master data you would see in a Billings / AR / CR process is? a. Shipping b. Sales Order c. Packing Slip d. Accounts Receivable

D

What are important billing controls? a. Monitor shipments not billed b. Independent pricing data c. Confirm customer accounts regularly d. All of the above

D

Which departments/role in the accounts payable/cash disbursements process safeguards the assets? a. Purchasing department b. Accounts payable c. Receiving department d. Cashier

D

Which document notifies the purchaser of his or her obligation to pay? a. Vendor packing slip b. Receiving report c. Acceptance report d. Vendor invoice

D

Which of the following activities is NOT part of the computer agreement of batch totals: a. A batch total is manually computed prior to data entry b. Data shown on source documents are key entered or scanned c. The computer produces a report that includes a batch total d. A personal reconciles the manual and computer batch totals

D

Which of the following data stores would you LEAST expect to see in the logical DFD for a purchasing process? a. Inventory master data b. Vendor master data c. Purchase order master data d. Cash receipts data

D

Which of the following departments is not typically involved in the order entry/sales process? a. Shipping b. Sales c. Credit d. Accounts receivable

D

Which of the following documents represents a formal "contract" between two parties? a. Shipping's inventory notification b. Packing slip c. Customer acknowledgment d. Bill of lading

D

Which of the following is not included in the SCOR model as one of the five basic components of supply chain management a. Plan b. Source c. Deliver d. Receive

D

With companies facing global competition, firms are recognizing that their most import asset is? a. Inventory b. Machinery and equipment c. Cash d. A happy customer

D