AC 340 Final

Purchase returns and allowances

An exception routine is usually performed for:

Customer master data, Accounts receivable master data, Sales order master data

For a typical order entry/sales process to check a customer's credit, which data stores would likely be consulted?

Reconcile input and output batch totals

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?

Collaborative Forecasting and Replenishment (CFAR)

Which type of supply chain collaboration includes the retailer and the manufacturer forecasting demand and scheduling production jointly?

Treasurer

Who usually authorizes a payment?

The supervisor of the requisitioning department

Who usually authorizes a purchase requisition?

Hash totals

A batch control total that generally has no other purpose than control:

Record counts

A batch total that represents the minimum level of control for input completeness:

Manual agreement of batch totals

A control of the billing process that ensures updates completeness and update accuracy:

Document design Ensures: effectiveness, efficient employment of resources, IA

A control plan in which the source document is designed to make it easier to prepare the document for input:

Preformatted screens Ensures: effectiveness, efficient employment of resources, IA

A control plan that controls the entry of data by defining the acceptable format of each data field:

Online prompting Ensures: effectiveness, efficient employment of resources, IA

A control plan that requests user input or asks questions that the user must answer:

Written approval Ensures: security of resources, IV

A control plan that takes the form of signatures or initials on a document to indicate that a person has authorized the event:

Match invoice, purchase order, and receiving report

A control plan to ensure input accuracy in payables processing is:

Confirming with the customer the amount still owed

A customer statement serves as a control by:

Security of funds

Commonly associated with the treasury function:

General ledger master data

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 -Accounts receivable master data -Marketing data -Inventory master data

The credit to cash is recorded

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:

Checking the customer's credit, verifying inventory availability, completing the sales order

In a typical order entry/sales (OE/S) process, validating a sales order likely would involve all of the following processes:

Payment due date information

In an accounts payable/cash disbursements process, a process "make payment" normally would be triggered by the data flow:

Vendor invoice

In an accounts payable/cash disbursements process, a process"establish payable" would normally would be triggered by:

Sales order

In the OE/S process, the document that represents an independent authorization to ship goods to the customer is the:

Review shipped not billed sales orders (tickler file)

In the billing function described in the text, the control plan that contributes to effective operations is:

Effectiveness of operations (timely billing)

In the billing process, the control plan of review shipped not billed sales orders (tickler file) helps to ensure:

Open-item system

One type of accounts receivable system is balance-forward, the other is:

Lower cost to the customer, reduced inventories, reduced product defects

Potential benefits of supply chain management:

Match invoice, purchase order, and receiving report

The AP application matches invoices, quantities, prices and terms when it performs the control plan:

Purchase order master data

The ____ is a compilation of open purchase orders and includes the status of each item on order.

Control goals

The columns in a control matrix contain headings listing the business process':

Ensure effectiveness of operations

The control plan compare vendors for favorable prices, terms, quality and product availability is directed primarily at which of the following control goals?

Vendor invoice

The document one business sends to another business that identifies the goods or services to be paid and the amount is:

Purchase order

The document one business sends to another business that identifies the goods or services to be purchased is a:

Customer master data

The file most important for ensuring validity of inputs is the:

I and IV II and III

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 What is the correct pairing?

A purchase requisition is sent from inventory control to the purchasing department, the purchase order is sent to the vendor, goods or services are received from the vendor

The typical horizontal flows of information in a purchasing process might include all of the following:

Receive goods and services

The vendor packing slip triggers which process?

Send a "blind" copy of the purchase order to receiving

A control that can ensure that receiving clerks are not influenced by quantity information while actually counting incoming goods is to:

check digit verification

A control that can be used to reduce the likelihood of a transposition occurring when an account number is entered into a computer is:

Lockbox

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:

Marketing data

A data store designed primarily to serve the vertical information needs of the organization rather than the horizontal information flows:

Bill of lading

A document that represents a formal "contract" between two parties:

Accounts payable department manager

A manager who is most likely to report to the controller:

Exception routine

A process for out-of-the-ordinary or erroneous events is called:

Ensure update completeness

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:

ABC analysis

A technique for ranking items in a group based on the output of the items

Reorder point analysis (ROP)

A technique that has the reorder point based on each inventory item's sales rate:

Accounts receivable department manager

According to the concept of segregation of duties, which of the following managers should report to the controller rather than to the treasurer?

Vendor master data, inventory master data, purchase order master data

At the time that a purchasing process performs the process of ordering goods and services, the process is likely to interact with all of the following data stores:

Ensure security of the cash asset

In the cash receipts process, the control plan of immediately endorsing incoming checks is designed to achieve the control goal of:

Establish payable

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?

Determine requirements

In the level 0 DFD for purchasing, a data flow called "inventory purchase requisition" most likely would be sent by the inventory management process to which processes?

Inspect and approve quality, Count the quantity received, compare the vendor's packing slip to a copy of the purchase requisition

In the process of preparing a receiving report, the receiving department should perform all of the following tasks:

A copy of the sales order sent by the sales order function to the billing function, A shipping notice sent by the shipping function to the billing function, A remittance advice

Inputs to the billing/accounts receivable/cash receipts process normally could include:

Vertical reporting by the order entry/sales (OE/S) process

Sales by geographical region are reported to the manager of customer sales and service. What is this an example of?

Meeting the decision needs of those who manage various sales and marketing functions

The primary function of the order entry/sales process includes:

Accounts receivable

The principal master data that you would expect to see in a billing/accounts receivable/cash receipts process is the:

Human resource process

The order entry/sales (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 ____.

Efficiency

The purpose of ________ control goals is to ensure that all resources used throughout the business process are being employed in the most productive manner.

security

The purpose of ________ control goals is to ensure that entity resources are protected from loss, destruction, disclosure, copying, sale, or other misuse.

Factoring

To reduce the cost of collecting its accounts receivable, a company sells its accounts receivable to a financial organization. The service is called:

False

True or False: 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.

False

True or False: 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 its shipment.

False

True or False: A tickler file addresses the control goal of update accuracy.

False

True or False: In a post-billing system, invoices are prepared upon acceptance of the customer order.

False

True or False: In an accounts payable/cash disbursements process, you would expect that "validating" a vendor invoice might include having a copy of the invoice approved by the purchasing manager

True

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

False

True or False: Online prompting is a programmed edit check.

True

True or False: Written approvals do not address the control goal of input accuracy.

Horizontal information flow

When the sales order department acknowledges a customer order, it is an example of a:

Sales order

Which document may show a number of items which are different from the number of items actually shipped to a customer?

Purchase order

Which document would be matched with the vendor invoice to ensure that the purchase was authorized (i.e., to ensure input validity)?

Sell Side

____ applications can handle both B2B and B2C transactions.

Data mining

____ is intended to allow the use of sophisticated statistical and other analytical software to help an organizations's members develop insights about customers, processes and markets.

Hash total

a summation of customer account numbers take from a batch of sales invoices would be classified as a: