ACC 409 CHAPTER 12 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
1) ________ is not a basic activity of the revenue cycle.
Receiving
If a firm does not use an ERP, the best way to mitigate the risk of the destruction
of master data is to
implement backup and disaster recovery procedures.
If a firm uses an ERP, the best way to mitigate the risk of the destruction of
master data is to
implement the ERP system in three separate instances.
Which of the decisions below is not ordinarily found as part of the revenue cycle?
How often should accounts receivable be subjected to audit?
Which of the following is not a key decision that needs to be made in the revenue
cycle?
Which vendor should inventory be purchased from?
Consider the following revenue cycle scenario: The company has been exposed
to customer dissatisfaction and the suggested control procedure to be
implemented is to install and use bar-code scanners. What is the threat?
The company may be shipping the wrong merchandise.
In a revenue cycle with proper controls, the ________ who reports to the
________, is not involved in any cash handling activities.
, accounts receivable clerk; controller
A serious exposure in the revenue cycle is loss of assets. What is the related
threat and applicable control procedure that address this exposure?
theft of cash; segregation of duties and minimization of cash handling
Which of the following duties could be performed by the same individual and not
violate segregation of duty controls?
handling cash receipts and mailing vendor payments
Which of the following is not a general threat to the revenue cycle?
loss of customers
The revenue cycle's primary objective is to
provide the right product in the right place at the right time for the right price.
Which of the following controls can minimize the threat of incomplete/inaccurate
orders?.
Restriction of access to master data.
Which of the following controls can minimize the threat of theft of cash?
Use of cash registers.
Which of the following controls can minimize the threat of failure to bill?
Separation of billing and shipping functions.
Which of the following controls can minimize the threat of theft of inventory?
Bar-code and RFID technology.
Regularly reviewing an accounts receivable aging report can help management
do what?
spot firms who are falling behind in their payments
COMPLETE SOLUTIONS GRADED A++
1) ________ is not a basic activity of the revenue cycle.
Receiving
If a firm does not use an ERP, the best way to mitigate the risk of the destruction
of master data is to
implement backup and disaster recovery procedures.
If a firm uses an ERP, the best way to mitigate the risk of the destruction of
master data is to
implement the ERP system in three separate instances.
Which of the decisions below is not ordinarily found as part of the revenue cycle?
How often should accounts receivable be subjected to audit?
Which of the following is not a key decision that needs to be made in the revenue
cycle?
Which vendor should inventory be purchased from?
Consider the following revenue cycle scenario: The company has been exposed
to customer dissatisfaction and the suggested control procedure to be
implemented is to install and use bar-code scanners. What is the threat?
The company may be shipping the wrong merchandise.
In a revenue cycle with proper controls, the ________ who reports to the
________, is not involved in any cash handling activities.
, accounts receivable clerk; controller
A serious exposure in the revenue cycle is loss of assets. What is the related
threat and applicable control procedure that address this exposure?
theft of cash; segregation of duties and minimization of cash handling
Which of the following duties could be performed by the same individual and not
violate segregation of duty controls?
handling cash receipts and mailing vendor payments
Which of the following is not a general threat to the revenue cycle?
loss of customers
The revenue cycle's primary objective is to
provide the right product in the right place at the right time for the right price.
Which of the following controls can minimize the threat of incomplete/inaccurate
orders?.
Restriction of access to master data.
Which of the following controls can minimize the threat of theft of cash?
Use of cash registers.
Which of the following controls can minimize the threat of failure to bill?
Separation of billing and shipping functions.
Which of the following controls can minimize the threat of theft of inventory?
Bar-code and RFID technology.
Regularly reviewing an accounts receivable aging report can help management
do what?
spot firms who are falling behind in their payments
