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- 1. Multiple Choice________ is not a basic activity of the revenue cycle.ReceivingSales order entryShippingBilling
- 2. Multiple ChoiceThe revenue cycle's primary objective is toprovide quality product in order to maximize market share.lower expenses.maximize the company's profit.provide the right product in the right place at the right time for the right price.
- 3. Multiple ChoiceRegularly reviewing an accounts receivable aging report can help management do what?determine whether the firm's pricing policy is effectiveidentify customers who have not purchased anything latelyspot firms who are falling behind in their paymentsimprove the speed which customers make payments
- 4. Multiple ChoiceA way to incorporate the advantages of Electronic Data Interchange with the Electronic Funds Transfer isan electronic lockbox.Financial Electronic Data Interchange.to use procurement cards.e-commerce.
- 5. Multiple ChoiceThe benefits of a lockbox arrangement with a bank are maximized whenseveral banks around the country are used, in order to minimize the time payments spend in the mail.the bank deposits the payments and accesses the customer's information system to record the payments.the bank is located nearby to the company, so remittance advices can be delivered to the company every day.an arrangement is made with only one bank, so all remittance advices can be batched for processing.
- 6. Multiple ChoiceThe accounts receivable clerk destroys all invoices for sales made to family and friends and does not record the sales in the accounts receivable subsidiary ledgers. The family and friends usually give the clerk cash as a "thank you." Which procedure will not prevent or detect this fraud?Sequentially prenumber all invoices and prepare a sequence check at the end of each day.Send monthly statements to all customers with balances owed.Reconcile sales invoices in the billing department to the total debits to accounts receivable subsidiary ledgers.Reconcile the accounts receivable control account to the accounts receivable subsidiary ledger.
- 7. Multiple ChoiceA(n) ________ system prepares and mails monthly statements to customers throughout the entire month, instead of just at the end of the month.open-invoicecontinuousbalance forwardcycle billing
- 8. Multiple ChoiceThe basic document created in the billing process is call a ________.sales ordersales invoicebill of ladingpacking list
- 9. Multiple ChoiceTwo documents usually accompany goods shipped to a customer. What are the two documents?a packing slip and a bill of ladinga bill of lading and an invoicean invoice and a sales orderan invoice and a packing slip
- 10. Multiple ChoiceIt costs ________ times as much to acquire a new customer as it does to make a sale to an existing customer.82510
- 11. Multiple ChoiceSpecial software packages called ________ can help an organization manage customer service.VMI systemsPOS systemsCRM systemsEDI systems
- Answer choicesTagsAnswer choicesTags