HFMA CSPPM
3 Practice Quizzes
Q&A
2024
,1. What is the sales and collection cycle also known as?
a) Revenue, Receivables, and Receipts (RRR) Cycle
b) Revenue, Recognition, and Receipts (RRR) Cycle
c) Revenue, Receivables, and Reconciliation (RRR) Cycle
d) Revenue, Recognition, and Reconciliation (RRR) Cycle
**a) Revenue, Receivables, and Receipts (RRR) Cycle**
Rationale: According to Corporate Finance Institute , the
sales and collection cycle is composed of various classes of
transactions that involve sales revenue, accounts
receivable, and cash receipts.
2. What is the first step in the typical business process of
the sales and collection cycle?
a) The customer files a purchase order
b) The sales department prepares a sales order
c) The credit department approves the customer and the
order
d) The shipping department generates a shipping document
**a) The customer files a purchase order**
Rationale: According to Corporate Finance Institute , the
process usually begins when a customer approaches the
company and files a customer purchase order.
3. What is the name of the document that the shipping
department generates when sending out goods to
customers?
a) Sales invoice
b) Bill of lading
c) Sales order
, d) Purchase order
**b) Bill of lading**
Rationale: According to Corporate Finance Institute , the
shipping department generates a shipping document, also
referred to as a bill of lading or a waybill.
4. What is the internal control that ensures that each sales
transaction is supported by the necessary documents?
a) Segregation of duties
b) Authorization of transactions
c) Documentation of transactions
d) Reconciliation of accounts
**c) Documentation of transactions**
Rationale: According to Corporate Finance Institute , an
internal control pertaining to the occurrence assertion is
that each sales transaction is supported by the necessary
documents, such as the approved sales order, shipping
documents, and invoice.
5. What are the five applicable assertions for classes of
transactions in the sales and collection cycle?
a) Cut-off, classification, completeness, occurrence, and
accuracy
b) Completeness, existence, rights and obligations,
valuation and allocation, and presentation and disclosure
c) Existence, completeness, rights and obligations,
accuracy and valuation, and classification and
understandability
d) Existence or occurrence, completeness or cutoff,
accuracy or valuation or allocation, rights or obligations or
3 Practice Quizzes
Q&A
2024
,1. What is the sales and collection cycle also known as?
a) Revenue, Receivables, and Receipts (RRR) Cycle
b) Revenue, Recognition, and Receipts (RRR) Cycle
c) Revenue, Receivables, and Reconciliation (RRR) Cycle
d) Revenue, Recognition, and Reconciliation (RRR) Cycle
**a) Revenue, Receivables, and Receipts (RRR) Cycle**
Rationale: According to Corporate Finance Institute , the
sales and collection cycle is composed of various classes of
transactions that involve sales revenue, accounts
receivable, and cash receipts.
2. What is the first step in the typical business process of
the sales and collection cycle?
a) The customer files a purchase order
b) The sales department prepares a sales order
c) The credit department approves the customer and the
order
d) The shipping department generates a shipping document
**a) The customer files a purchase order**
Rationale: According to Corporate Finance Institute , the
process usually begins when a customer approaches the
company and files a customer purchase order.
3. What is the name of the document that the shipping
department generates when sending out goods to
customers?
a) Sales invoice
b) Bill of lading
c) Sales order
, d) Purchase order
**b) Bill of lading**
Rationale: According to Corporate Finance Institute , the
shipping department generates a shipping document, also
referred to as a bill of lading or a waybill.
4. What is the internal control that ensures that each sales
transaction is supported by the necessary documents?
a) Segregation of duties
b) Authorization of transactions
c) Documentation of transactions
d) Reconciliation of accounts
**c) Documentation of transactions**
Rationale: According to Corporate Finance Institute , an
internal control pertaining to the occurrence assertion is
that each sales transaction is supported by the necessary
documents, such as the approved sales order, shipping
documents, and invoice.
5. What are the five applicable assertions for classes of
transactions in the sales and collection cycle?
a) Cut-off, classification, completeness, occurrence, and
accuracy
b) Completeness, existence, rights and obligations,
valuation and allocation, and presentation and disclosure
c) Existence, completeness, rights and obligations,
accuracy and valuation, and classification and
understandability
d) Existence or occurrence, completeness or cutoff,
accuracy or valuation or allocation, rights or obligations or
