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