350
The cashier deposits checks in the bank for XYZ Corp. Who should reconcile the bank statement on a regular basis for operational purposes?
internal auditor
In a logical DFD for the order entry/sales (OE/S) process, which of the following data stores would you expect to be updated by the process execute shipping notice?
inventory master data
The OE/S process includes the first four steps in the order-to-sales process. The order of these four steps is
pre-sales activities, sales order processing, picking and packing, shipping
Digital signatures allows the vendor to determine that the sender of the message has the authority to send it and thus prevents an unauthorized purchase.
true
In an open-item accounts receivable system, invoices (new or settled in the current period) are listed, along with payment details.
true
In the organization structure shown in the text, although both report to the VP of Finance, the treasurer and controller functions should be segregated.
true
Input control goals include those to ensure input validity, input completeness and input accuracy.
true
One of the primary functions of the OE/S is to create information flows which support the repetitive work routines of the sales order, shipping, and credit departments.
true
The purchase order triggers the make payment process.
false
The principal master data that you would expect to see in a billing/accounts receivable/cash receipts process is the:
Accounts receivable
____ systems use the Internet to automate and manage vendors and purchases with the predominate technology being electronic data interchange (EDI).
Buy side
Which type of supply chain collaboration includes the retailer and the manufacturer forecasting demand and scheduling production jointly?
Collaborative Forecasting and Replenishment (CFAR)
A ________________ occurs when someone has a personal stake in the outcome of contract/purchase order.
Conflict of Interest
Which of the following is not an example of a customer self-service system?
Drive thru lanes at a bank
A debit card is a method of payment whereby a third party, for a fee, removes from the collector the risk of noncollection of the account receivable.
False
The sales department should be responsible for credit approval so sales personnel can immediately increase sales volume.
False
The following is a list of two types of accounts receivable systems and two types of organizations: I. Open-item II. Balance-forward III. Public utility IV. Wholesale merchandise Which of the following pairs normally are correct?
I and IV, II and III
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?
Independent authorization to make payment
The AP application matches invoices, quantities, prices and terms when it performs the control plan:
Match invoice, purchase order, and receiving report
For security of resources, which control plan , by determining that payments input and made reflect only those authorized by the clerk to help ensure that cash is not disbursed inappropriately and the validity of inputs?
Reconcile input and output batch totals
Which of the following statements identifies a recent trend in today's business environment?
The quality of customer service influences the ability of a business to compete in a global marketplace.
The typical horizontal flows of information in a purchasing process might include all of the following except:
a copy of a receiving report is sent to the cashier
Which of the following activities would not occur when an inventory manager decides to return merchandise to a vendor?
a credit memorandum is issued to the vendor
Which of the following is a technique for ranking items in a group based on the output of the items?
abc analysis
An example of the vertical information flows supported by the B/AR/CR process is a(n):
accounts receivable aging report
The resources for which the counts payable/cash disbursements process wants to ensure security typically include all of the following except:
accounts receivable master data
Non-invoiced payments include
all of the above
Which of the following is part of Collaborative Planning, Forecasting and Replenishment (CPFR) process?
all of the above
Which of the following is a horizontal information flow?
all of the above are horizontal information flows
The accounts receivable system typically used by utilities is the
balance forward system
A customer is instructed to send his remittance advice and check to a bank's postal address. This method for collecting customer cash receipts is called:
c. Lockbox
As discussed in the text, the functions of the billing/accounts receivable/cash receipts process:
collects amounts due from customers
Which control is most effective in contributing to the goal of ensure input accuracy in the billing function?
compare input shipping notices to sales order master data
In the process of preparing a receiving report, the receiving department should perform all of the following tasks except:
compare the completed receiving report to the information stored in the purchase order master data
Not knowing whether input data has been accepted by the information system, the user enters the data again, resulting in duplicate event data. The control plan that helps to prevent this error is:
confirm input acceptance
Issues related to the purchasing function, such as kickbacks, bribes, conflicts of interest, and the like are often addressed by ____.
corporate codes of conduct
According to the logical flow diagrams of the OE/S system, which of the following data stores provides data to the system but is not updated by it?
customer master data
In constructing a control matrix for an order entry/sales (OE/S) process, the principal data input(s) to the information system likely would be:
customer order and shipping notice inputs
Which of the following control plans is designed both to authenticate a system user's identity and to verify the integrity of a message transmitted by that user?
digital signature
Which of the following is a control plan in which the source document is designed to make it easier to prepare the document for input?
document design
The process of encoding data so that it may only be read by someone having a key is called:
encryption
The control plan compare vendors for favorable prices, terms, quality and product availability is directed primarily at which of the following control goals?
ensure effectiveness of operations
A digital signature is aimed primarily at ensuring which of the following information systems control goals?
ensure input validity
Immediately endorsing incoming checks satisfies the control goal of
ensure security of resources
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:
ensure update completeness
In the level 0 DFD for an accounts payable/cash disbursements process, a data flow called "vendor invoice" most likely would be sent by the vendor to which of the following processes?
establish payable
In general, adjustments to customer balances in the accounts receivable master data will be necessary for all of the following except:
estimates of uncollectible accounts
A process for out-of-the-ordinary or erroneous events is called:
exception routine
To reduce the cost of collecting its accounts receivable, a company sells its accounts receivable to a financial organization. The service is called:
factoring
A digital signature tests whether the contents of two or more data fields bear the correct logical relationship
false
A packing slip authorizes the warehouse to remove goods from the warehouse and send them to the shipping department.
false
A true voucher system requires that all expenditures for whatever purpose and in excess of a certain dollar amount be formally approved for payment and be recorded as a payable before they can be paid.
false
An electronic bill presentment and payment (EBPP) system is a B2B system that uses a Web site to post customer bills and to receives electronic payments.
false
Buy-side systems are designed to allow a company to market sell deliver and service goods and services to customers throughout the world via the Internet.
false
Database systems are Internet based systems for sending bills/invoices to customers and receiving the customer payment electronically.
false
Goal congruence exists when each individual managers' goals are achieved.
false
If a customer refuses to accept a back order, then the sales order is terminated and the sales order is accepted
false
In an open-item system, accounts receivable records consist of a customer's current balance due, past-due balance, and the finance charges and payments related to the account.
false
Notifications that a PO has been prepared and sent to the vendor are sent to the receiving department, the accounts receivable process, and the department or process that requested the purchase.
false
The cashier is responsible for processing vendor invoices, preparing payment vouchers, and recording purchase and disbursement transactions.
false
The level 0 diagram of the AP/CD Process contains the two process bubbles of establish payable and approve checks.
false
In a logical DFD for the order entry/sales (OE/S) process, which of the following data stores is least likely to interact with the process validate sales order?
general ledger master data
Which batch control total generally has no other purpose than control?
hash totals
The control plan tickler file of payments due, is directed primarily at which of the following control goals?
input completeness
The purpose of input control goals is to ensure
input validity, completeness, and accuracy
A control in which two people key the same inputs into a system where they are automatically compared is called
key verification
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.
lapping
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?
manage customer accounts
Which of the following compares manual calculations to computer calculations?
mathematical accuracy check
A document that is used when completing a customer order to authorize the movement of goods from a warehouse to shipping is called a:
picking ticket
A document that is used when filling a sales order to authorize the movement of goods from a warehouse to shipping is called a:
picking ticket
A control that can be used to ensure that all of the characters of a social security number are entered by a data entry clerk is:
preformatted screens
At the time that a purchasing process places an order for goods or services, which of the following is typically updated?
purchase order data
Which of the following most likely would be "blinded" on a copy of the purchase order sent to the receiving department?
quantities
Which of the following is not included in the SCOR model as one of the five basic components of supply chain management
receive
Which of the following normally would trigger the billing/accounts receivable/cash receipts process to record a customer payment?
remittance advice
In the billing function described in the text, the control plan that contributes to effective operations is:
review shipped not billed sales orders (tickler file)
The primary reason that direct entry of sales order data by sales personnel enhances efficiency is because:
sales personnel are familiar with the orders and can input them more quickly
The grouping of customers into categories based on key characteristics is called
segmentation
A control that can ensure that receiving clerks are not influenced by quantity information while actually counting income goods is to
send a "blind" copy of the purchase order to receiving
Which of the following controls requires that documents be pre numbered before it can be implemented?
sequence check
The typical purchasing process would capture and record data related to the day-to-day operations of all of the following except:
shipping
In an order entry/sales (OE/S) process, you could expect that a sales order notification would be sent to
the billing/accounts receivable/cash receipts process
In a nonvoucher system, the distribution of charges (debits) to asset or expense accounts for the payment of a noninvoiced obligation (e.g., rent) normally is recorded in an event data (i.e., journal) at the time that:
the credit to cash is recorded
Who usually authorizes a payment?
the treasurer
A customer acknowledgement is sent to the customer to notify him or her of the order's acceptance and the expected shipping date.
true
A paperless system would eliminate documents and forms as the medium for conducting business transactions.
true
A tickler file is one that is reviewed on a current and regular basis for the purpose of taking action to clear the items from that file.
true
Supply chain management is the combination of processes and procedures used to ensure the delivery of goods and services to customers at the lowest cost while providing the highest value to the customer.
true
The business document that accompanies the purchased inventory from the vendor and identifies the shipment and triggers the inventory receiving process is the packing slip.
true
The connections between an organization, including the flow of information, materials, and services from suppliers of raw materials through the organization's customers, are its supply chain.
true
The often missing control plan of cash planning report includes an aging of open AP records that is produced and reviewed on a regular basis in order to ensure that there is an adequate cash reserve to make required payments
true
The trigger for either a true voucher process or a non voucher process is a payment request.
true
When a customer service representative enters data into the OE/S system, the first screen prompt is usually for the customer number.
true
Whereas a receiving report normally indicates that goods have been received, some organizations use an acceptance report to acknowledge formally the satisfactory completion of a service contract
true
Within the make payment process, the three subprocesses are "Prepare proposed payments", "Select and record payments", and "Issue and record disbursements".
true
When the accounts payable/cash disbursements process records a payable obligation, the data flow between "validate invoice" and "record payable" is?
validated vendor invoice
In an accounts payable/cash disbursements process, a process"establish payable" would normally would be triggered by:
vendor invoice
Information for evaluating vendor performance normally would reside on the:
vendor master data