chapter 9 fis

The customer can earn a 2% cash discount by paying within 10 days of the invoice date.

A prompt payment term such as "2/10:n/30" means which of the following?

Creation of a cash receipts transaction file record.

Creation of a cash receipts transaction file record.

All of the above may cause an organization to decide to write off small, apparently uncollectible amounts.

From time to time, an organization may decide to write off old, small amounts of accounts receivable because of which of the following?

A dun

If a customer's payment is delayed for an excessive period of time, what is the appropriate notice to be sent?

A receivable is recorded.

Which of the following actions result from a pledge (with agreement to pay) to a non- profit organization?

Independent checks should be made to ascertain that the correct prices are being charged to pre-approved customers

Which of the following controls ensures the accuracy of transactions in the revenue process?

Updating the inventory master file.

Which of the following is an action that follows the shipment notification to a customer in the revenue process of a merchandising or manufacturing organization?

Standing orders

Which of the following is an application of the recurring entry concept?

Issuance of sales orders. B. Monitoring of outstanding sales orders. C. Reporting on the time it takes to fill sales orders.

Which of the following is effected through the sales order module?

All of the above are associated with cash handling risks in the revenue process

Which of the following represent cash handling risks in the revenue process?

The inventory management and shipping functions are in different buildings.

Which of the following represents the proper segregation of duties in the revenue process?

Detailed A/R aging

Which type of report lists individual past due invoices by customer?

-all of the above are purposes of an aging accounts recievable report

an aging accounts receivable reports is commonly used for which of following purposes

Relevant data

for sales analysis is reporting, one of the most important factors is which of the following

the revenue process

sales, sales order processing, shipping and accounts receivable are part of which of the following processes

the revenue process

the process that encompasses events related to the distribution of good and services to customers and the receipt of money in exchange for these goods and services is known as what process

events related to the distribution of goods and services to customers

the revenue process encompasses which of the following

-advestising promotion and sales order solicitation -sales order receipt and processing -shipping

what are the activities encompassed by the revenue process

all of the above are principal events to be recorded in the revenue process

what are the principal events to be recorded in the revenue process

picking list

what document identifies the products and quatities ordered and gives the warehouse location aisle number shelf position bin number or other reference to the location of the goods

FOB point

what is the location at which title to goods changes from the shipping organization to the customer known as

-balance foward -open item

what is the method of accounting for accounts receivable

picking list

what is the most critical report for shipping activities

all of the above are valid purposes of sales analysis reports

what is the purpose of sales analysis reporting

cycle billing

what is the spreading of customer billing throughout the month by dividing customer accounts into groups and billing each group at a differnt time during the month known as

remittance advice

which of the following is a control document for cash receipts

sales order processing

which of the following is included in the revenue process

intermittent identification

which of the following is not a method of payment application for open item accounts

payment of stock dividends

which of the following is not included in the revenue process

invoice records remain in the open invoice file until payment is received

which of the following is not true regarding the balance forward method of accounting for accounts receivable

no attempt is made to match individual payments and invoices

which of the following is not true regarding the open item method of accounting for accounts receivable

payments are applied to the outstanding balance rather than to the particular invoices

which of the following is true regarding the balance forward method of accounting for accounts receivable

invoice records remain in the open invoice file until payment is received

which of the following is true regarding the open item method of accounting for accounts receivable

pre identification

which of the following methods is the most commonly used payment application for open accounts

detailed aging

which type of report lists individual invoices by customer

the purchases and financial process

while advertising, promotion, and sales solicitations are functions in the business revenue process, the costs of these activities are accounted for in which process

pre identification

with which of the methods of payment application for open item accounts is a person required to identify the open invoices being paid as well as any credits being taken