1. A document listing the names and amounts of all customer payments received in the mail
a. remittance list
b. AR ledger
c. AP ledger
d.bank statement
2.An employee makes a credit sale to a customer who is already four months behind in making payments
on his account. How to control the issue?
a. Digital signatures or written signatures
b. Aging of receivables
c. Match sales order with the purchase order
d. Specific authorization to approve sales to new customers or sales that exceed a customer’s credit
limit
3. Document used to authorize reducing the balance in a customer account.
a. debit memo
b.credit memo
c. sales order
d.sales invoice
4. Document used to establish responsibility for shipping goods via a third party
a. picking ticket
b. official receipts c.transaction receipts
d. Bill of lading
5. For good internal control, who should approve credit memos?
a. credit manager b.sales manager
c.billing manager
d.controller
6. Method of maintaining customer accounts that generates payments for each individual sales
transaction.
a. Open-invoice method
c. balance forward
b. statement of account
d. remittance advice
7. Process of dividing customer account master file into subsets and preparing invoices for one subset at a
time.
a. monthly statement
b.cycle billing
c.AR filing
d.balance forward method
8. The integrated database underlying an ERP system results in which of the following general threats to
the revenue cycle?
a. inaccurate or invalid master data
b. unauthorized disclosure of sensitive information
c. loss or destruction of data
d. all of the above
9. Which activity is part of the sales order entry process?
a. setting customer credit limits
c. preparing a bill of lading
b. checking customer credit
d.approving sales returns
10.Which document is used to authorize the release of merchandise from the inventory control
(warehouse) to shipping?
a. picking ticket
c. packing slip
b. shipping order
d. Sales
11. Which document often accompanies merchandise shipped to a customer?
a. picking ticket
c. packing slip
b. remittance slip
d. sales order
12. Which of the following revenue cycle activities can potentially be eliminated by technology?
a. sales order entry
b. shipping
c. billing
d. cash collections
13. Workers on the shipping dock steal goods, claiming that the inventory shortages reflect errors in the
inventory records. Which of the following cannot solve the issue?
a. documentation of all inventory transfer.
b. RFID and bar code technology
c. restriction of physical access of inventory
d. Reconciliation of shipping documents with sales orders, picking lists, and packing slips
14. They pack and ship the order.
a. warehouse
b. shipping
c. customer service
d. sale order
15. This maintains the customer accounts by increases customer account when sales are made and
decreases account when cash is collected.
a. cashier
c. credit manager
b. accounts receivable
d. billing manager
16. How to address wrongly picked items?
a. configuration of ERP system for preventing duplicate shipments.
b. proper reconciliation of picking list to sales order details.
c. periodic reconciliation of invoices to sales orders, picking tickets and shipping documents.
d. periodic physical counts.
17. Which of the following provides a means to both improve the efficiency of processing customer
payments and also enhance control over those payments?
a. CRM
b. lockboxes
c. aging accounts receivable
d.EDI
Enumerate the four (4) basic revenue cycle activities in order, and sample documents in the cycle
Revenue Cycle Activities
Revenue Cycle Activities
Documents used
18. Sales order entry
22. Picking ticket
19. Billing
23. Packing slip
20. shipping
24. Remittance advice
21. Cash collection
25. Sales order