AC 340 Final

The AP application matches invoices, quantities, prices and terms when it performs the control plan: Independent validation of vendor invoices Match invoice, purchase order, and receiving report Independent authorization to make payment Reconcile input and output batch totals

Match invoice, purchase order, and receiving report

Which of the following items is not a control goal of the accounts payable/cash disbursements process? Minimize inventory carrying costs. Independent validation of vendor invoices Independent authorization to make payment Reconcile bank account

Minimize inventory carrying costs.

The columns in a control matrix contain headings listing the business process': control goals control plans control environment control procedures

control goals

Having too many control plans directed at the same control goal is called: control efficiency control effectiveness control redundancy control completeness

control redundancy

Which of the following is least likely to report directly to the vice president of logistics? controller receiving department purchasing department warehouse

controller

The file most important for ensuring validity of inputs is the: customer master data accounts receivable master data marketing data completed picking ticket data

customer master data

An example of a "rejection procedure" is a(n): back order process inventory subroutine customer acknowledgment process sales order processing process

back order process

Which of the following managers is most likely to report to the controller? accounts payable department manager cashier purchasing department manager receiving department manager

accounts payable department manager

The resources for which the counts payable/cash disbursements process wants to ensure security typically include all of the following except: cash accounts payable master data accounts receivable master data none of the above

accounts receivable master data

Non-invoiced payments include payroll income taxes investments all of the above

all of the above

Which of the following is a potential problem with supply chain management initiatives? confused lines of responsibility inaccurate data within the supply chain over-reliance on demand forecasting all of the above

all of the above

Which of the following data stores is designed primarily to serve the vertical information needs of the organization rather than the horizontal information flows? inventory master data marketing data sales order master data customer master data

marketing data

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: dependency check procedures for rejected inputs preformatted screens turnaround documents

preformatted screens

A control report generated by a system that shows data about transactions that were accepted or rejected during a transaction processing step is called a(n): violation report exception and summary report variance report program change log

exception and summary report

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 automated clearing house factoring funding

factoring

A control that can ensure that receiving clerks are not influenced by quantity information while actually counting incoming goods is to: send a "blind" copy of the purchase order to receiving establish a "tickler" file for completed purchase orders send copies of a receiving report to accounts payable establishing "blanket orders" in purchasing

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

What factor has caused an escalation of check forgeries in recent years? the increased use of EDI the availability of inexpensive color laser printers a lack of control plans to control automated funds transfer a repeal of severe civil and criminal penalties for such crimes

the availability of inexpensive color laser printers

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

treasurer and controller

When they are sent to a customer and returned with the payment, remittance advices are examples of: batch control totals computer-prepared documents written approval controls turnaround documents

turnaround documents

Data about vendor compliance with the terms of the purchase order normally would reside on the: accounts payable master data vendor master data inventory master data warehouse master data

vendor master data

Purchase orders are sent to: customers vendors carriers managers

vendors

In the billing process, the control plan of review shipped not billed sales orders (tickler file) helps to ensure: effectiveness of operations (timely billing) efficient employment of resources security of resources input accuracy

effectiveness of operations (timely billing)

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

efficiency

____ systems use the Internet to automate and manage vendors and purchases with the predominate technology being electronic data interchange (EDI). Customer relationship management Buy side Sell side none of the above

Buy side

Which type of supply chain collaboration techniques includes the vendor obtaining the buyer's current sales, demand, and inventory data in real time and replenishing the buyer's inventory? Continuous Replenishment (CRP) or Vendor Managed Inventory (VMI) Co-Managed Inventory Collaborative Forecasting and Replenishment (CFAR) Collaborative Planning, Forecasting and Replenishment (CPFR)

Continuous Replenishment (CRP) or Vendor Managed Inventory (VMI)

Before a shipping notice is prepared by shipping personnel, they should match the details of which of the following pairs of data flows? The picking ticket and a copy of the sales order earlier sent to shipping from the order entry department. The completed picking ticket and a copy of the sales order earlier sent to shipping from the order entry department. A copy of the sales order earlier sent to shipping from the order entry department and the bill of lading. The completed picking ticket and the bill of lading.

The completed picking ticket and a copy of the sales order earlier sent to shipping from the order entry department.

Who usually authorizes a payment? the controller the purchasing manager a purchasing agent the treasurer

The treasurer

In a purchasing process, the receiving report may be accessed by all of the following except: accounts payable department cashier warehouse requesting department

cashier

Data flows of an accounts payable/cash disbursements process normally might include all of the following except: PO accounts payable notification PO copy sent to the inventory system receiving report vendor invoice

PO copy sent to the inventory system

Which of the following is a technique for ranking items in a group based on the output of the items? cyclical reordering reorder point analysis EOQ models ABC analysis

ABC analysis

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 make payment order inventory none of the above

Establish payable

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 validation of vendor invoices Match invoice, purchase order, and receiving report Independent authorization to make payment Reconcile input and output batch totals

Independent authorization to make payment

The control plan independent validation of vendor invoice is directed primarily at which of the following control goals? Select a vendor who will provide the best quality at the lowest price by the promised delivery date. Input validity. Input accuracy. Input completeness.

Input Validity

The control plan tickler file of payments due, is directed primarily at which of the following control goals? Select a vendor who will provide the best quality at the lowest price by the promised delivery date. Input validity. Input accuracy. Input completeness.

Input completeness

Which is an example of vertical reporting by the order entry/sales (OE/S) process? The credit manager notifies sales order processing that a customer's credit has been approved. Sales by geographical region are reported to the manager of customer sales and service. The shipping department notifies sales order processing of all shipments made for a particular period of time. The sales order department acknowledges a customer order.

Sales by geographical region are reported to the manager of customer sales and service.

____ applications can handle both B2B and B2C transactions. Customer relationship management Buy side Sell side none of the above

Sell side

In an accounts payable/cash disbursements process, a process "establish payable" would normally would be triggered by: vendor invoice a purchase order a copy of the purchase order sent to the inventory process a vendor acknowledgment

Vendor Invoice

Which of the following normally would trigger the billing process in a billing/accounts receivable/cash receipts process? a copy of the sales order a shipping notice a picking ticket a customer acknowledgment

a shipping notice

For a charge sale event, the cashier is to the cash custodial function as the ____ is to the recording function. shipping department credit department accounts receivable department none of the above

accounts receivable department

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

all of the above are horizontal information flows

A remittance advice generally would be recorded in which of the following pairs of data stores? customer master data and accounts receivable master data sales event data and accounts receivable master data accounts receivable adjustments data and accounts receivable master data cash receipts data and accounts receivable master data

cash receipts data and accounts receivable master data

Inventory carrying costs include all of the following except: clerical cost of ordering goods opportunity cost of invested funds insurance costs obsolescence and deterioration

clerical cost of ordering goods

In the process of preparing a receiving report, the receiving department should perform all of the following tasks except: inspect and approve quality count the quantity received compare the completed receiving report to the information stored in the purchase order master data compare the vendor's packing slip to a copy of the purchase requisition

compare the completed receiving report to the information stored in the purchase order master data

In a typical order entry/sales (OE/S) process, validating a sales order likely would involve all of the following processes except: checking the customer's credit verifying inventory availability completing the sales order completing the picking ticket

completing the picking ticket

A customer statement serves as a control by: notifying the customer that payment is due triggering the receive payment process confirming with the customer the amount still owed updating the accounts receivable master file

confirming with the customer the amount still owed

Plaintext and ciphertext are terms associated with ____. coding schemes hash totals programmed edit checks data encryption

data encryption

Which of the following is a ratio used to monitor the investment in accounts receivable? accounts receivable aging report days' sales outstanding sales turnover inventory turnover

days' sales outstanding

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 written approval preformatted screens online prompting

document design

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

ensure AR master data update accuracy

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

ensure efficient employment of resources and ensure input accuracy

Digital signatures addresses all of the following control goals except: ensure security of resources ensure input completeness ensure input validity ensure input accuracy

ensure input completeness

In the level 0 DFD for an accounts payable/cash disbursements process, a data flow called "receiving report" most likely would be sent by the purchasing process to which of the following processes? order inventory receive goods and services establish payable make payment

establish payable

For a typical order entry/sales (OE/S) process to check a customer's credit, all of the following data stores likely would be consulted except the: general ledger master data customer master data accounts receivable master data sales order master data

general ledger master data

Which of the following types of batch totals is likely to be most effective in ensuring the control goal of input accuracy? line counts document/record counts item counts hash totals

hash totals

In an accounts payable/cash disbursements process, you would expect that "validating" a vendor invoice might include all of the following steps except: having a copy of the invoice approved by the purchasing manager comparing the invoice with a copy of the purchase order comparing the invoice with a copy of the receiving report checking the invoice for mathematical accuracy

having a copy of the invoice approved by the purchasing manager

When the sales order department acknowledges a customer order, it is an example of a: vertical information flow horizontal information flow both vertical and horizontal information flow neither vertical nor horizontal information flow

horizontal information flow

Which control plan for the cash receipts function has as its primary control goal to ensure security of resources? reconcile bank account regularly. enter cash receipts close to where cash is received. immediately endorse incoming checks. one-to-one checking of deposit slips and checks.

immediately endorse incoming checks.

A control plan that helps ensure the security of resources within the AP/CD process is: requisition confirmation to originating department approve vendor selection independent validation of vendor invoice independent authorization to make payment

independent authorization to make payment

Which of the following control plans is designed to achieve the goal of input accuracy? key verification confirm input acceptance batch sequence check cumulative sequence check

key verification

The primary function of the order entry/sales (OE/S) process includes: identifying decisions made by marketing personnel highlighting the key organizational features of the marketing function producing financial statements meeting the decision needs of those who manage various sales and marketing functions

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

Which of the following is not a programmed edit check? online prompting check digit verification mathematical accuracy check limit checks

online prompting

Which of the following data is least likely to be stored in the customer master data? customer number billing address ship-to address open invoices

open invoices

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

open-item system

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 pre-sales activities, picking and packing, sales order processing, shipping pre-sales activities, picking and packing , shipping, sales order processing none of the above

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

A control whose primary purpose is to ensure greater input accuracy is: tickler file preformatted screens confirm input acceptance procedures for rejected inputs

preformatted screens

At the time that an accounts payable/cash disbursements process makes payment for goods or services, the process generally follows which order. Assume here that you prepare the check select and record payments, prepare proposed payments, issue and record disbursements prepare proposed payments, issue and record disbursements, select and record payments issue and record disbursements, select and record payments, prepare proposed payments prepare proposed payments, select and record payments, issue and record disbursements

prepare proposed payments, select and record payments, issue and record disbursements

An exception routine is usually performed for: processing payments vendor invoice identification purchase returns and allowances to update the general ledger

purchase returns and allowances

The purchasing process is part of the ____ process for a merchandising firm. order-to-cash purchase-to-pay conversion general ledger/financial reporting

purchase-to-pay

Which of the following most likely would be "blinded" on a copy of the purchase order sent to the receiving department? inventory descriptions vendor identification quantities freight terms

quantities

A "blind" copy of the purchase order should be sent to receiving so that: receiving can anticipate the receipt of the goods from the vendor receiving clerks will know the value of what is on order partial shipments can be monitored receiving clerks will be forced to actually count the goods that are received

receiving clerks will be forced to actually count the goods that are received

In the control matrix, the rows represent: control goals of the operations system recommended control plans including present and missing controls control goals of the information system control goals of the management system

recommended control plans including present and missing controls

Which of the following process bubbles (i.e., activities) would you not expect to see in the logical DFD for a billing/accounts receivable/cash receipts process? perform billing requisition inventory receive customer payment manage customer accounts

requisition inventory

Which of the following process bubbles would you not expect to see in the logical DFD for a accounts payable/cash disbursements process? requisition inventory establish payable make payment none of the above

requisition inventory

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

review shipped not billed sales orders (tickler file)

The control plan confirm input acceptance helps to achieve the sales order input control goal of: sales order input validity sales order input accuracy sales order input completeness shipping notice input accuracy

sales order input completeness

Which of the following is least likely to report (either directly or indirectly) to the vice president of finance? controller treasurer shipping department supervisor accounts payable department

shipping department supervisor

In a purchasing process, once requirements are determined and a vendor selected, the next step is: the purchase requisition the purchase order receive goods and services a vendor acknowledgment

the purchase order

In a billing/accounts receivable/cash receipts process, which of the following data stores is least likely to interact with a process called "perform billing"? vendor master data customer master data accounts receivable master data sales event data

vendor master data

The purchasing process--receive goods and services--normally would be triggered by the data flow: purchase order vendor acknowledgment vendor packing slip purchase requisition

vendor packing slip

Which disbursement system most easily facilitates paying a number of invoices with a single check? nonvoucher system voucher system balance-forward system open-items system

voucher system

Which of the following is a control plan that takes the form of signatures or initials on a document to indicate that a person has authorized the event? document design written approval preformatted screens online prompting

written approval