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11 QuestionsShow answers
Question 1
SURVEY
30 seconds
Q. ________ is not a basic activity of the revenue cycle.
answer choices
Receiving
Sales order entry
Shipping
Billing
Question 2
SURVEY
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
SURVEY
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
SURVEY
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.
e-commerce.
Question 5
SURVEY
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
SURVEY
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
SURVEY
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
open-invoice
continuous
balance forward
cycle billing
Question 8
SURVEY
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
SURVEY
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
SURVEY
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
8
2
5
10
Question 11
SURVEY
30 seconds
Q. Special software packages called ________ can help an organization manage customer service.