ACCT 461 Ch 12 Revenue
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11 QuestionsShow answers
  • Question 1
    30 seconds
    Q. ________ is not a basic activity of the revenue cycle.
    answer choices
    Sales order entry
  • Question 2
    30 seconds
    Q. The revenue cycle's primary objective is to
    answer choices
    provide 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.
  • Question 3
    45 seconds
    Q. Regularly reviewing an accounts receivable aging report can help management do what?
    answer choices
    determine whether the firm's pricing policy is effective
    identify customers who have not purchased anything lately
    spot firms who are falling behind in their payments
    improve the speed which customers make payments
  • Question 4
    30 seconds
    Q. A way to incorporate the advantages of Electronic Data Interchange with the Electronic Funds Transfer is
    answer choices
    an electronic lockbox.
    Financial Electronic Data Interchange.
    to use procurement cards.
  • Question 5
    45 seconds
    Q. The benefits of a lockbox arrangement with a bank are maximized when
    answer choices
    several 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.
  • Question 6
    45 seconds
    Q. The 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?
    answer choices
    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.
  • Question 7
    30 seconds
    Q. A(n) ________ system prepares and mails monthly statements to customers throughout the entire month, instead of just at the end of the month.
    answer choices
    balance forward
    cycle billing
  • Question 8
    30 seconds
    Q. The basic document created in the billing process is call a ________.
    answer choices
    sales order
    sales invoice
    bill of lading
    packing list
  • Question 9
    30 seconds
    Q. Two documents usually accompany goods shipped to a customer. What are the two documents?
    answer choices
    a packing slip and a bill of lading
    a bill of lading and an invoice
    an invoice and a sales order
    an invoice and a packing slip
  • Question 10
    30 seconds
    Q. It costs ________ times as much to acquire a new customer as it does to make a sale to an existing customer.
    answer choices
  • Question 11
    30 seconds
    Q. Special software packages called ________ can help an organization manage customer service.
    answer choices
    VMI systems
    POS systems
    CRM systems
    EDI systems
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