350

The cashier deposits checks in the bank for XYZ Corp. Who should reconcile the bank statement on a regular basis for operational purposes?

internal auditor

In a logical DFD for the order entry/sales (OE/S) process, which of the following data stores would you expect to be updated by the process execute shipping notice?

inventory master data

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

Digital signatures allows the vendor to determine that the sender of the message has the authority to send it and thus prevents an unauthorized purchase.

true

In an open-item accounts receivable system, invoices (new or settled in the current period) are listed, along with payment details.

true

In the organization structure shown in the text, although both report to the VP of Finance, the treasurer and controller functions should be segregated.

true

Input control goals include those to ensure input validity, input completeness and input accuracy.

true

One of the primary functions of the OE/S is to create information flows which support the repetitive work routines of the sales order, shipping, and credit departments.

true

The purchase order triggers the make payment process.

false

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

Accounts receivable

____ systems use the Internet to automate and manage vendors and purchases with the predominate technology being electronic data interchange (EDI).

Buy side

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

Collaborative Forecasting and Replenishment (CFAR)

A ________________ occurs when someone has a personal stake in the outcome of contract/purchase order.

Conflict of Interest

Which of the following is not an example of a customer self-service system?

Drive thru lanes at a bank

A debit card is a method of payment whereby a third party, for a fee, removes from the collector the risk of noncollection of the account receivable.

False

The sales department should be responsible for credit approval so sales personnel can immediately increase sales volume.

False

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 Which of the following pairs normally are correct?

I and IV, II and III

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 authorization to make payment

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

Match invoice, purchase order, and receiving report

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?

Reconcile input and output batch totals

Which of the following statements identifies a recent trend in today's business environment?

The quality of customer service influences the ability of a business to compete in a global marketplace.

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

a copy of a receiving report is sent to the cashier

Which of the following activities would not occur when an inventory manager decides to return merchandise to a vendor?

a credit memorandum is issued to the vendor

Which of the following is a technique for ranking items in a group based on the output of the items?

abc analysis

An example of the vertical information flows supported by the B/AR/CR process is a(n):

accounts receivable aging report

The resources for which the counts payable/cash disbursements process wants to ensure security typically include all of the following except:

accounts receivable master data

Non-invoiced payments include

all of the above

Which of the following is part of Collaborative Planning, Forecasting and Replenishment (CPFR) process?

all of the above

Which of the following is a horizontal information flow?

all of the above are horizontal information flows

The accounts receivable system typically used by utilities is the

balance forward system

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:

c. Lockbox

As discussed in the text, the functions of the billing/accounts receivable/cash receipts process:

collects amounts due from customers

Which control is most effective in contributing to the goal of ensure input accuracy in the billing function?

compare input shipping notices to sales order master data

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

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

Not knowing whether input data has been accepted by the information system, the user enters the data again, resulting in duplicate event data. The control plan that helps to prevent this error is:

confirm input acceptance

Issues related to the purchasing function, such as kickbacks, bribes, conflicts of interest, and the like are often addressed by ____.

corporate codes of conduct

According to the logical flow diagrams of the OE/S system, which of the following data stores provides data to the system but is not updated by it?

customer master data

In constructing a control matrix for an order entry/sales (OE/S) process, the principal data input(s) to the information system likely would be:

customer order and shipping notice inputs

Which of the following control plans is designed both to authenticate a system user's identity and to verify the integrity of a message transmitted by that user?

digital signature

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

The process of encoding data so that it may only be read by someone having a key is called:

encryption

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

ensure effectiveness of operations

A digital signature is aimed primarily at ensuring which of the following information systems control goals?

ensure input validity

Immediately endorsing incoming checks satisfies the control goal of

ensure security of resources

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:

ensure update completeness

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

In general, adjustments to customer balances in the accounts receivable master data will be necessary for all of the following except:

estimates of uncollectible accounts

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

exception routine

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

factoring

A digital signature tests whether the contents of two or more data fields bear the correct logical relationship

false

A packing slip authorizes the warehouse to remove goods from the warehouse and send them to the shipping department.

false

A true voucher system requires that all expenditures for whatever purpose and in excess of a certain dollar amount be formally approved for payment and be recorded as a payable before they can be paid.

false

An electronic bill presentment and payment (EBPP) system is a B2B system that uses a Web site to post customer bills and to receives electronic payments.

false

Buy-side systems are designed to allow a company to market sell deliver and service goods and services to customers throughout the world via the Internet.

false

Database systems are Internet based systems for sending bills/invoices to customers and receiving the customer payment electronically.

false

Goal congruence exists when each individual managers' goals are achieved.

false

If a customer refuses to accept a back order, then the sales order is terminated and the sales order is accepted

false

In an open-item system, accounts receivable records consist of a customer's current balance due, past-due balance, and the finance charges and payments related to the account.

false

Notifications that a PO has been prepared and sent to the vendor are sent to the receiving department, the accounts receivable process, and the department or process that requested the purchase.

false

The cashier is responsible for processing vendor invoices, preparing payment vouchers, and recording purchase and disbursement transactions.

false

The level 0 diagram of the AP/CD Process contains the two process bubbles of establish payable and approve checks.

false

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

Which batch control total generally has no other purpose than control?

hash totals

The control plan tickler file of payments due, is directed primarily at which of the following control goals?

input completeness

The purpose of input control goals is to ensure

input validity, completeness, and accuracy

A control in which two people key the same inputs into a system where they are automatically compared is called

key verification

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.

lapping

In a logical DFD for billing/accounts receivable/cash receipts (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?

manage customer accounts

Which of the following compares manual calculations to computer calculations?

mathematical accuracy check

A document that is used when completing a customer order to authorize the movement of goods from a warehouse to shipping is called a:

picking ticket

A document that is used when filling a sales order to authorize the movement of goods from a warehouse to shipping is called a:

picking ticket

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:

preformatted screens

At the time that a purchasing process places an order for goods or services, which of the following is typically updated?

purchase order data

Which of the following most likely would be "blinded" on a copy of the purchase order sent to the receiving department?

quantities

Which of the following is not included in the SCOR model as one of the five basic components of supply chain management

receive

Which of the following normally would trigger the billing/accounts receivable/cash receipts process to record a customer payment?

remittance advice

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

review shipped not billed sales orders (tickler file)

The primary reason that direct entry of sales order data by sales personnel enhances efficiency is because:

sales personnel are familiar with the orders and can input them more quickly

The grouping of customers into categories based on key characteristics is called

segmentation

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

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

Which of the following controls requires that documents be pre numbered before it can be implemented?

sequence check

The typical purchasing process would capture and record data related to the day-to-day operations of all of the following except:

shipping

In an order entry/sales (OE/S) process, you could expect that a sales order notification would be sent to

the billing/accounts receivable/cash receipts process

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:

the credit to cash is recorded

Who usually authorizes a payment?

the treasurer

A customer acknowledgement is sent to the customer to notify him or her of the order's acceptance and the expected shipping date.

true

A paperless system would eliminate documents and forms as the medium for conducting business transactions.

true

A tickler file is one that is reviewed on a current and regular basis for the purpose of taking action to clear the items from that file.

true

Supply chain management is the combination of processes and procedures used to ensure the delivery of goods and services to customers at the lowest cost while providing the highest value to the customer.

true

The business document that accompanies the purchased inventory from the vendor and identifies the shipment and triggers the inventory receiving process is the packing slip.

true

The connections between an organization, including the flow of information, materials, and services from suppliers of raw materials through the organization's customers, are its supply chain.

true

The often missing control plan of cash planning report includes an aging of open AP records that is produced and reviewed on a regular basis in order to ensure that there is an adequate cash reserve to make required payments

true

The trigger for either a true voucher process or a non voucher process is a payment request.

true

When a customer service representative enters data into the OE/S system, the first screen prompt is usually for the customer number.

true

Whereas a receiving report normally indicates that goods have been received, some organizations use an acceptance report to acknowledge formally the satisfactory completion of a service contract

true

Within the make payment process, the three subprocesses are "Prepare proposed payments", "Select and record payments", and "Issue and record disbursements".

true

When the accounts payable/cash disbursements process records a payable obligation, the data flow between "validate invoice" and "record payable" is?

validated vendor invoice

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

vendor invoice

Information for evaluating vendor performance normally would reside on the:

vendor master data