Revision MCQ BISM3201 PART 1

51. Those entities which perform no information processing activities for the system are called: A. external entities B. internal entities C. boundary entities D. environmental entities

A. external entities

61. In a logical data flow diagram (DFD) for a cash receipts system, each of the following labels might appear in a bubble except: A. Cashier B. capture cash receipt C. prepare deposit D. record customer payment

A. Cashier

79. The technology that allows information on documents to be converted into machine-readable data through a scanner is called a(n): A. OCR B. MICR C. bar code reader D. Digitizer

A. OCR

84. Which statement concerning the following diagram 1.0 logical data flow diagram (DFD) is true? A. The data flow diagram follows DFD guidelines. B. An arrow should never leave a bubble with no destination. C. Data should only flow from a data store. D. Data flow diagrams (DFDs) at this level should show the external entities.

A. The data flow diagram follows DFD guidelines.

70. On a systems flowchart, a paper file is represented by a: A. Triangle B. Cylinder C. Rectangle D. Pentagon

A. Triangle

70. Which of the following is not part of the horizontal information flows of the B/AR/CR process? A. accounts receivable aging report B. customer payment C. bank deposit D. customer invoice

A. accounts receivable aging report

77. Bar code readers: A. are devices that use light reflection to read differences in bar code patterns to identify a labeled item. B. are devices used for pattern recognition of handwritten or printed characters. C. are input devices that capture printed images or documents and convert them into electronic digital signals that can be stored on computer media. D. are computer-based systems for capture, storage, retrieval, and presentation of images of objects such as pictures and documents.

A. are devices that use light reflection to read differences in bar code patterns to identify a labeled item.

63. An example of an "exception routine" is a(n): A. back order process B. inventory subroutine C. customer acknowledgement process D. sales order processing process

A. back order process

52. Which symbol can be either an entity or a process depending on the type of data flow diagram (DFD)? A. bubble symbol B. external entity symbol C. data flow symbol D. data store symbol

A. bubble symbol

84. 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 shipped not billed sales orders (tickler file)

A. compare input shipping notices to sales order master data

80. The file most important for ensuring validity of customer order inputs is the: A. customer master data B. accounts receivable master data C. marketing data D. completed picking ticket data

A. customer master data

60. The concept behind ____ is to cultivate customer relationships by prospecting, acquiring, servicing, and retaining customers. A. customer relationship management (CRM) systems B. customer self-service (CSS) software C. sales-force automation (SFA) software D. sell-side systems

A. customer relationship management (CRM) systems

47. Which data flow diagram (DFD) symbol is usually portrayed with an arrow? A. data flow B. data store C. external entity D. process or internal entity

A. data flow

57. Analytical applications, which include ____, are 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 modules D. market segmentation models

A. data mining

62. In the billing process, the control plan of review shipped 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. effectiveness of operations (timely billing)

62. A specific type of reject stub is called a(n): A. exception routine B. summary report C. corrective routine D. normal routine

A. exception routine

65. In a logical DFD for the OE/S process, which of the following data stores is least likely to interact with the process validate sales order? A. general ledger master data B. accounts receivable master data C. marketing data D. inventory master data

A. general ledger master data

69. For a typical OE/S process to check a customer's credit, all of the following data stores likely would be consulted except the: A. general ledger master data B. customer master data C. accounts receivable master data D. sales order master data

A. general ledger master data

55. In a pre-billing system, invoices are prepared: A. immediately upon acceptance of a customer order B. when there is to be a delay between the time that the order is accepted and the time it is shipped C. where inventory balances can be determined only through physical count D. to improve customer relations

A. immediately upon acceptance of a customer order

49. Which of the following data flow diagram (DFD) guidelines is correct? A. include within the system context any entity that performs one or more information processing activities B. read computer data stores from the process bubble that requires the data C. include within the system context any entity in the system narrative D. data flows should never go from higher- to lower-numbered bubbles

A. include within the system context any entity that performs one or more information processing activities

82. A form of fraud in which the payments made by one customer are systematically applied to the account of another is called: A. lapping B. malfeasance C. pre-posting D. knitting

A. lapping

44. The 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. order-to-cash

39. In an organization in which the OE/S and 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. managing customer accounts D. securing payment of customer accounts

A. picking goods in the warehouse

77. The billing system in which the invoice is prepared after goods have been shipped and the sales order notification has been matched to shipping's billing notification is called a(n): A. post-billing system B. open-item system C. pre-billing system D. balance-forward system

A. post-billing system

46. 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. pre-sales activities, sales order processing, picking and packing, shipping

48. In addition to the warehousing function, the three primary departments that you would expect to be part of a typical OE/S process are: A. sales order, shipping, and credit B. sales order, shipping, and accounts payable C. sales order, credit, and accounts payable D. credit, shipping, and accounts payable

A. sales order, shipping, and credit

76. An information processing activity could be any of the following except: A. sending or receiving data between entities B. document preparation C. data entry D. Verification

A. sending or receiving data between entities

51. An invoice record usually contains all of the following elements except: A. the customer's credit limit B. customer's identification C. items and quantities billed D. invoice date

A. the customer's credit limit

68. Why do auditors and systems analysts use systems documentation? A. to understand, explain, and improve complex systems B. only to provide justification to management for systems investments C. to reduce the number and amount of external entities D. to eliminate evidence to be collected

A. to understand, explain, and improve complex systems

64. A process in which successive layers of data flow diagrams (DFDs) are constructed by "exploding" the bubbles on a less detailed DFD to show more detailed data flows is called: A. top-down partitioning B. serial expansion C. balanced construction D. expanded data flows

A. top-down partitioning

58. Typically, the operations process goals of the B/AR/CR: A. vary, depending on the organization and its particular view of these processes B. remain the same for all organizations C. vary inversely with the information process goals D. are the same as the information process goals

A. vary, depending on the organization and its particular view of these processes

46. In a B/AR/CR process, which of the following data stores is least likely to interact with a process called "perform billing"? A. vendor master data B. customer master data C. accounts receivable master data D. sales event data

A. vendor master data

51. 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 vertical nor horizontal information flow

A. vertical information flow

58. ____ systems use the Internet to automate and manage purchases and the vendors from which these purchases are made with the predominate technology being electronic data interchange (EDI). A. Customer relationship management B. Buy-side C. Sell-side D. E-business

B. Buy-side

56. ____ applications in organizations are usually viewed as being focused on either operational or analytical applications. A. Data mining B. Data warehousing C. Data entry D. Market segmentation

B. Data warehousing

82. The following is a jumbled list of the activities suggested in this text for drafting data flow diagrams (DFDs) for an existing system: I. Prepare a table of entities and activities. II. Prepare an annotated table of entities and activities. III. Draw a physical data flow diagram. IV. Draw a logical data flow diagram. V. Draw a context diagram. The best sequence for undertaking these activities is: A. I, II, V, III, IV B. I, V, III, II, IV C. II, I, III, V, IV D. II, IV, III, I, V

B. I, V, III, II, IV

75. How many circles (bubbles) are included in a correctly drawn context diagram? A. Zero B. One C. Three D. between 5 and 7 bubbles

B. One

53. A company using a centralized database approach might not maintain a relational table for ACCOUNTS RECEIVABLE. Rather, accounts receivable balances at any point in time could be computed as the difference between the relations for which of the following continuous events? A. SHIPMENTS and SALES_INVOICES B. SALES_INVOICES and CASH_RECEIPTS C. SHIPMENTS and CASH_RECEIPTS D. CUSTOMER and SALES_INVOICES

B. SALES_INVOICES and CASH_RECEIPTS

76. Quantities of items shipped to a customer would typically be found in the relational table for: A. CUSTOMERS B. SALES_RELATIONS C. BANKS D. DEPOSITS

B. SALES_RELATIONS

61. A data flow or event that causes a process to begin is called a: A. Tickler B. Trigger C. Document D. validity check

B. Trigger

38. According to the concept of segregation of duties, which of the following managers should report to the controller rather than to the treasurer? A. credit department manager B. accounts receivable department manager C. cashier D. investments manager

B. accounts receivable department manager

47. In a logical DFD for a B/AR/CR process, which of the following data stores would you expect to interact with a process called "manage customer accounts"? A. inventory master data B. accounts receivable master data C. sales event data D. cash receipts event data

B. accounts receivable master data

67. Information processing activities include: A. only automated activities B. activities that retrieve, transform, and file data C. the sending of data between entities D. operational activities

B. activities that retrieve, transform, and file data

67. A valid shipping notice input is one that is supported by both: A. an approved sales order and a completed picking ticket B. an approved sales order and an actual shipment of goods C. an approved sales order and a customer acknowledgement D. an approved sales order and customer credit verification

B. an approved sales order and an actual shipment of goods

42. A data flow diagram (DFD) could contain each of the following symbols except: A. a bubble or circle B. an octagon C. a square D. a curved line with an arrow head

B. an octagon

73. Placing a customer's bills on a company's own Web site and sending an e-mail telling the customer that his or her bill is there is called: A. electronic funds transfer B. electronic bill presentment C. electronic bill payment D. electronic document management

B. electronic bill presentment

63. The B/AR/CR process comprises three different but related processes¾namely, billing, accounts receivable, and cash receipts. Which of the following would not be an operations process goal for these three processes? A. ensure effectiveness of operations B. ensure AR master data update accuracy C. ensure efficient employment of resources D. ensure security of resources

B. ensure AR master data update accuracy

60. For the cash receipts process, the control plan turnaround documents helps to achieve which of the following pairs of control goals? A. ensure input validity and ensure input completeness B. ensure efficient employment of resources and ensure input accuracy C. ensure input completeness and ensure input accuracy D. ensure security of resources and ensure input accuracy

B. ensure efficient employment of resources and ensure input accuracy

61. In the cash receipts process, the control plan of immediately endorsing incoming checks is designed to achieve the control goal of: A. ensure the timely deposit of cash receipts B. ensure security of the cash asset C. ensure cash receipts input accuracy D. ensure cash receipts input completeness

B. ensure security of the cash asset

44. Which data flow diagram (DFD) symbol portrays a source or destination of data outside the system? A. data flow symbol B. external entity symbol C. bubble symbol D. data store symbol

B. external entity symbol

78. To make a logical data flow diagram (DFD) readable, how many bubbles should be used? A. one to three B. five to seven C. eight to ten D. as many as needed but no more than ten

B. five to seven

80. All of the following are "guidelines" for grouping activities in a level 0 DFD except: A. group activities if they occur in the same place and at the same time B. group activities if they occur at different times in the same place C. group activities if they occur at the same time but in different places D. group activities that seem to be logically related

B. group activities if they occur at different times in the same place

50. 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. horizontal information flow

56. 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. lapping

48. In a logical DFD for a 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. manage customer accounts

74. 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. marketing data

79. On a logical data flow diagram (DFD), data flows: A. always go from a higher-numbered to a lower-numbered bubble B. never go from a higher-numbered to a lower-numbered bubble C. can go in either direction as needed D. must go from a bubble to a square

B. never go from a higher-numbered to a lower-numbered bubble

74. The accounts receivable system in which all the accounts receivable master data contains individual open invoices, against which payments and other adjustments are applied: A. pre-billing system B. open-item system C. balance-forward system D. post-billing system

B. open-item system

56. Which type of data flow diagram specifies where, how, and by whom a system's processes are performed? A. context diagram B. physical data flow diagram C. logical data flow diagram D. systems flowchart

B. physical data flow diagram

44. Which of the following normally would trigger the B/AR/CR process to record a customer payment? A. credit memo B. remittance advice C. deposit slip D. notice to the general ledger to record a cash receipt

B. remittance advice

42. Which of the following process bubbles (i.e., activities) would you not expect to see in the logical DFD for a B/AR/CR process? A. perform billing B. requisition inventory C. receive customer payment D. manage customer accounts

B. requisition inventory

83. In the OE/S process, the document that represents an independent authorization to ship goods to the customer is the: A. bill of lading B. sales order C. customer acknowledgement D. shipping notice

B. sales order

81. The control plan preformatted screens is directed primarily toward achieving the information process control goal of ensuring: A. sales order input validity B. sales order input accuracy C. sales order input completeness D. sales order update completeness

B. sales order input accuracy

71. Which of the following is most commonly associated with the treasury function? A. recording of event data B. security of funds C. reporting of results of business events D. maintaining accounting records

B. security of funds

43. Which of the following normally would trigger the billing process in a B/AR/CR process? A. remittance advice B. shipping notice C. picking ticket D. customer acknowledgment

B. shipping notice

59. Data flow labels in context diagrams usually describe: A. what the data are (physical labels) B. the nature of the data (logical labels) C. to whom the data are being transmitted (identity labels) D. where the data are being sent (directional labels)

B. the nature of the data (logical labels)

48. In the top-down partitioning of process 3.0, the next level's process bubbles would be labeled (assuming there are four subprocesses): A. 1.3, 2.3, 3.3, 4.3 B. 3.A, 3.B, 3.D, 3.D C. 3.1, 3.2, 3.3, 3.4 D. 3.1.1, 3.1.2, 3.1.3, 3.1.4

C. 3.1, 3.2, 3.3, 3.4

88. To reduce the cost of collecting its accounts receivable, a company sells its accounts receivable to a financial organization. The service is called: A. collection agency advance B. lock-boxing C. Factoring D. Funding

C. Factoring

41. Which of the following statements regarding Check 21 is false? A. It allows banks to exchange checks electronically. B. Before this system, paper checks were flown around the country from bank-to-bank to complete the check-clearing process. C. It requires that banks exchange check images. D. It significantly reduced float.

C. It requires that banks exchange check images.

67. Which of the following statements is true? A. In a pre-billing system, invoices are prepared after the goods have been shipped and the sales order notification has been matched to the shipping's billing notification. B. In a post-billing system, invoices are prepared upon acceptance of the customer order. C. Of the two types of billing systems discussed in the text, the pre-billing system requires the more accurate inventory records. D. Of the two types of billing systems discussed in the text, the pre-billing system is appropriate in situations where there is a significant delay between acceptance of the customer's order and the subsequent shipment.

C. Of the two types of billing systems discussed in the text, the pre-billing system requires the more accurate inventory records.

69. On a systems flowchart, computer processing is represented by a: A. Square B. Trapezoid C. Rectangle D. Parallelogram

C. Rectangle

76. In an entity-relationship (E-R) diagram for the OE/S process, you would expect that the word trigger would appear in the diamond showing the relationship between which of the following pairs of entities? A. CUSTOMER and SALES ORDER B. CUSTOMER and SHIPMENT C. STOCK PICK and SHIPMENT D. SALES INVOICE and SHIPMENT

C. STOCK PICK and SHIPMENT

52. In an entity-relationship (E-R) diagram for the B/AR/CR process, you would expect that the word trigger would appear between the boxes for? A. CUSTOMER and SHIPMENT B. CUSTOMER and SALES INVOICE C. STOCK PICK and SHIPMENTS D. SALES INVOICE and SHIPMENT

C. STOCK PICK and SHIPMENTS

59. ____ applications can handle both B2B and B2C business transactions. A. Customer relationship management B. Buy-side C. Sell-side D. E-business

C. Sell-side

65. Which of the following statements related to the construction of data flow diagrams (DFDs) is false? A. The level 0 diagram is the next level down from the context diagram. B. If the level 0 diagram has one arrow going into bubble number 1.0 and two arrows leaving bubble number 1.0, then diagram 1.0 will show one arrow entering and two arrows leaving. C. Sources and destinations are depicted by parallel horizontal lines, between which the name of the entity is shown. D. Arrows represent a pathway for data.

C. Sources and destinations are depicted by parallel horizontal lines, between which the name of the entity is shown.

83. Examine the following context diagram and the related level 0 logical DFD. Which of the following statements is true? A. The diagrams are prepared correctly. B. A context diagram must have a least two external entities. C. The diagrams are not balanced. D. None of the above are true.

C. The diagrams are not balanced.

81. The cash receipts process can be accelerated by using the ACH network because it is: A. an immediate process B. a periodic process C. a type of EFT process D. a batch process

C. a type of EFT process

86. The control independent billing authorization ensures that bills: A. are accurate B. are for goods that were picked in the warehouse C. are for goods actually ordered by the customer D. have authorized prices

C. are for goods actually ordered by the customer

75. 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. balance-forward system

63. When two data flow diagrams (DFDs) have equivalent external data flows, we say that the two data flow diagrams are: A. congruent B. similar C. balanced D. equal

C. balanced

54. The OE/S process addresses the decision needs of managers of various sales and marketing functions through the use of: A. vertical information flows B. horizontal information flows C. both vertical and horizontal information flows D. neither vertical nor horizontal information flows

C. both vertical and horizontal information flows

41. A symbol used in data flow diagrams (DFDs) to depict an entity or process within which incoming data flows are transformed into outgoing data flows is a(n): A. data flow symbol B. external entity symbol C. bubble symbol D. data store symbol

C. bubble symbol

59. Which of the following control plans is most likely to appear in the input validity and input accuracy columns, but not in the input completeness column of a control matrix for the billing process? A. independent billing authorization B. reconcile input and output batch totals C. check for authorized prices, term, freight, and discounts D. procedures for rejected inputs

C. check for authorized prices, term, freight, and discounts

37. As discussed in the text, the functions of the B/AR/CR 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. collects amounts due from customers

53. Which of the following is the least detailed of the data flow diagrams? A. logical data flow diagram B. systems flowchart C. context diagram D. physical data flow diagram

C. context diagram

49. Inputs to the B/AR/CR process normally could include all of the following except: A. a copy of the sales order sent by the sales order function to the billing function B. a shipping notice sent by the shipping function to the billing function C. customer acknowledgement D. remittance advice

C. customer acknowledgement

79. In constructing a control matrix for an OE/S process, the principal data input(s) to the information system likely would be: A. customer inquiries and customer order inputs B. customer inquiries and shipping notice inputs C. customer order and shipping notice inputs D. customer order only

C. customer order and shipping notice inputs

86. The system that enables users of an ERP system to view source documents from any location is: A. electronic data interchange B. local area network C. digital image processing D. electronic commerce

C. digital image processing

50. Which of the following systems flowcharting guidelines is correct? A. documents or reports printed by a central computer should first be show in that computer's column B. sequential process steps, with no intervening delay, should be shown as one process C. divide the flowchart into columns, one for each internal entity, and label each column D. use a manual process symbol to show the sending or filing of a document

C. divide the flowchart into columns, one for each internal entity, and label each column

46. Which data flow diagram (DFD) symbol is usually portrayed with a square? A. data flow B. data store C. external entity D. process or internal entity

C. external entity

85. Which control plan for the cash receipts function has as 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. immediately endorse incoming checks.

84. In the control matrix of the OE/S process, regarding shipping notice inputs, which of the following control goals is ensured by comparing the shipping notice input to the sales order master data? A. input completeness and input accuracy B. input completeness and input validity C. input validity and input accuracy D. none of the above

C. input validity and input accuracy

57. A person, place, or thing within a system that transforms data is called: A. external entity B. data store C. internal entity D. Boundary

C. internal entity

60. In which of the following data flow diagrams does the bubble symbol represent a process and not the entire system? A. context diagram B. physical data flow diagram C. logical data flow diagram D. systems flowchart

C. logical data flow diagram

80. An overall management objective is to: A. minimize the number of sales transactions B. minimize the total amount of accounts receivable C. minimize the time from the beginning of the selling process to the end of the cash collections process D. maximize the amount of float

C. minimize the time from the beginning of the selling process to the end of the cash collections process

77. In drawing a context diagram, we should include: A. only exception routines B. only error routines C. only normal processing routines D. only normal processing and exception routines

C. only normal processing routines

69. The B/AR/CR process completes the: A. billing process B. production process C. order-to-cash process D. inventory process

C. order-to-cash process

70. 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. picking ticket

82. The control plan confirm input acceptance helps to achieve the sales order input control goal of: A. sales order input validity B. sales order input accuracy C. sales order input completeness D. shipping notice input accuracy

C. sales order input completeness

55. The grouping of customers into categories based on key characteristics is called: A. itemization B. Identification C. segmentation D. sales-force automation

C. segmentation

62. The data flows in a logical data flow diagram (DFD) show: A. how the data are transmitted B. where the data are transmitted C. the nature of the data being transmitted D. who transmits the data

C. the nature of the data being transmitted

49. The ultimate goal of the OE/S process is: A. to ensure accuracy of order entry and sales events B. to ensure increasing sales volume through the OE/S process C. to create value for the customer D. none of the above

C. to create value for the customer

78. Which of the following goals is not an example of an operations process goal of the typical OE/S process? A. to provide timely responses to customer inquiries B. to provide timely acknowledgements of customer orders C. to provide timely updates to general ledger accounts D. to provide timely shipments of goods to customers

C. to provide timely updates to general ledger accounts

71. At the time that the shipping notice is prepared and disseminated in an OE/S process, to the following entities are notified: A. billing, general ledger, carrier B. customer, carrier, general ledger C. warehouse, customer, billing D. warehouse, carrier, billing

C. warehouse, customer, billing

66. Which of the following statements is false? A. The typical B/AR/CR system assists in preparing internal and external reports. B. Cash receipts can be accelerated by using some form of EFT. C. The two types of adjustments that commonly result from a periodic review of the aging details of customer account balances are a recurring entry for estimated bad debts and a bad debt write-off. D. Cash receipts events data are comprised of one or more invoice records.

D. Cash receipts events data are comprised of one or more invoice records.

68. Which of the following statements is false? A. The check and remittance advice trigger the receive payment process. B. A bank lockbox provides more protection for cash than a system where cash receipts are mailed to the payee company and then deposited. C. Good funds are funds on deposit and available for use. D. From the standpoint of reducing the collector's float, a customer check is a better payment method than a debit card.

D. From the standpoint of reducing the collector's float, a customer check is a better payment method than a debit card.

87. 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: A. electronic funds transfer B. automated clearing house C. Check 21 D. Lockbox

D. Lockbox

53. With companies facing global competition, firms are recognizing that their most important asset is: A. inventory B. employees C. cash D. a happy customer

D. a happy customer

89. System flowchart logic should: A. flow from left to right B. flow top to bottom C. flow from bottom to top D. a. and b. but minimize crossed lines and connectors

D. a. and b. but minimize crossed lines and connectors

45. The principal master data that you would expect to see in a B/AR/CR process is the: A. sales order B. shipping notifications C. sales journal D. accounts receivable

D. accounts receivable

65. Digital images: A. help reduce paper in the B/AR/CR system B. may be scans of checks C. may be scans of remittance advices D. all of the above

D. all of the above

52. Which of the following is a horizontal information flow? A. sales order department requests credit approval from credit department B. sales order department acknowledges the order to the customer C. warehousing sends completed picking ticket to shipping D. all of the above are horizontal information flows

D. all of the above are horizontal information flows

72. Which of the following segregation of duties is not required for the B/AR/CR business process controls to be effective? A. price authorization and billing B. treasury and controllership C. bank reconciliation and cash receipts D. all of these are required for effective control

D. all of these are required for effective control

57. Deposit slips are usually generated by the B/AR/CR process: A. at the time invoices are prepared B. by manual procedures C. electronically D. as part of processing cash receipts

D. as part of processing cash receipts

73. Which of the following documents represents a contract between two parties? A. shipping's inventory notification B. packing slip C. customer acknowledgement D. bill of lading

D. bill of lading

64. Assuming that we separate the shipping and billing processes, which of the following data stores would you expect to be updated by an OE/S process called execute shipping notice? A. accounts receivable master data B. sales order master data C. inventory master data D. both B and C

D. both B and C

64. 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. cash receipts data and accounts receivable master data

66. In a typical OE/S process, validating a sales order likely would involve all of the following processes except: A. checking the customer's credit B. verifying inventory availability C. completing the sales order D. completing the picking ticket

D. completing the picking ticket

85. Digital image processing systems are capable of performing all of the following except: A. capture of data B. storage of data C. retrieval of data D. creation of data

D. creation of data

68. Assuming that we separate the shipping and billing processes, which of the following data stores provides data to the typical OE/S process but is not updated by the process? A. general ledger master data B. sales order master data C. inventory master data D. customer master data

D. customer master data

43. Which of the following data flow diagram (DFD) symbols is represented by two parallel lines? A. data flow symbol B. external entity symbol C. internal entity symbol D. data store symbol

D. data store symbol

47. The primary function of the OE/S process is to create information flows that support: A. decision making of sales personnel B. the key organizational features of the marketing function C. producing financial statements D. decision needs of those who manage various sales and marketing functions

D. decision needs of those who manage various sales and marketing functions

50. In general, adjustments to customer balances in the accounts receivable master data will be necessary for all of the following except: A. sales returns and allowances B. reversals of mispostings and other errors C. bad debt write-offs D. estimates of uncollectible accounts

D. estimates of uncollectible accounts

81. When a transaction cannot be processed in a routine fashion because of an error or other processing problems, the transaction must be handled by a(n): A. rejection routine B. change report C. exception and summary report D. exception routine

D. exception routine

45. The OE/S process handles the processing and shipment of a customer order while another process actually bills the customer. With such a configuration, you would not expect the OE/S system to interface directly with the ____. A. billing/accounts receivable/cash receipts process B. inventory process C. general ledger process D. human resource process

D. human resource process

54. In a physical data flow diagram (DFD), this is something within the system that transforms data. A. data flow B. data store C. external entity D. internal entity

D. internal entity

45. Which data flow diagram (DFD) symbol is usually portrayed with a circle? A. data flow B. data store C. external entity D. internal entity or process

D. internal entity or process

58. Which data flow diagram shows what activities the system is performing without having to specify how, where, or by whom the activities are accomplished? A. context diagram B. physical data flow diagram C. systems flowchart D. logical data flow diagram

D. logical data flow diagram

71. On a systems flowchart, a solid line with an arrow indicates a(n): A. batch total B. telecommunications link C. off-page connector D. logical flow

D. logical flow

75. Which of the following data is least likely to be stored in the customer master data? A. customer number B. billing address C. ship-to address D. open invoices

D. open invoices

54. One type of accounts receivable system is balance-forward, the other is: A. debit card system B. Automated Clearing House system C. Electronic Funds Transfer system D. open-item system

D. open-item system

78. A billing system that can be used when there is little or no delay between the receipt of the customer order and the shipment of the goods is a: A. post-billing system B. open-item system C. balance-forward system D. pre-billing system

D. pre-billing system

66. A systems flowchart varies from a data flow diagram (DFD) because it: A. only represents the information system B. only represents the operations system C. only represents the management system D. represents the management system, the operations system, and the information system

D. represents the management system, the operations system, and the information system

83. In the billing function described in the text, the control plan that contributes to effective operations is: A. edit the shipping notification for accuracy B. independent billing authorization C. compare input shipping notices to sales order master data D. review shipped not billed sales orders (tickler file)

D. review shipped not billed sales orders (tickler file)

72. At the time that the shipping notice is prepared and disseminated, two data stores within the OE/S process are normally updated. Those two data stores are the: A. customer master data and accounts receivable master data B. accounts receivable master data and sales order master data C. accounts receivable master data and marketing data D. sales order master data and inventory master data

D. sales order master data and inventory master data

90. Which of these represent a comprehensive picture of management, operations and information systems? A. context diagram B. logical data flow diagram C. physical data flow diagram D. systems flowchart

D. systems flowchart

40. Which of the following pairs of functions would you expect might report directly to the vice president of finance? A. credit department and controller B. shipping department and controller C. accounts receivable department and treasurer D. treasurer and controller

D. treasurer and controller

55. In a physical data flow diagram (DFD), a bubble or circle could be used to specify each of the following except: A. where a process is performed B. how a process is performed C. by whom a process is performed D. what process is performed

D. what process is performed