ACC 409 FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS GRADED A++
Know the associated source documents and what information you would find on
the source document (Revenue Cycle)
sales order
packing slip
Bill of lading
sales invoice
credit memos
remittance advice
deposit slip
What tasks happen during sales order entry?
•Sales order entry
•Shipping
,•Billing
•Cash Collections
What are other threats to sales order entry? (sales order)
1.Inaccurate or invalid master data
2.Unauthorized disclosure of sensitive information
3.Loss or destruction of data
4.Poor performance
What tasks happen during shipping?
•Pick and pack the order
•Ship the order
Who creates the bill of lading?
Receipt issued by the carrier
Materials Requirements Planning (MRP)
an approach to inventory management that seeks to reduce required inventory levels by
improving the accuracy of forecasting techniques to better schedule purchases to
satisfy production needs
Just-In-Time
, A system that minimizes or virtually eliminates inventories by purchasing and producing
goods only in response to actual, rather than foretasted, sales.
Accruals
entries made at the end of the accounting period to reflect events that have occurred
but for which cash has not yet been received or disbursed
Accruals Example
Example
The recording interest revenue earned and wages payable
Deferrals
entries made at the end of the accounting period to reflect the exchange of cash prior to
performance of the related event
Deferrals Example
Recognizing advance payments from customers as a liability and recording certain
payments as prepaid
Estimates
Entries that reflect a portion of expenses expected to occur over a number of
accounting periods
Estimates Example
Depreciation and bad-debt Expenses
Revaluations
Entries made to reflect differences between actual and recorded value of an asset or
change in accounting principle
Revaluations Example
COMPLETE SOLUTIONS GRADED A++
Know the associated source documents and what information you would find on
the source document (Revenue Cycle)
sales order
packing slip
Bill of lading
sales invoice
credit memos
remittance advice
deposit slip
What tasks happen during sales order entry?
•Sales order entry
•Shipping
,•Billing
•Cash Collections
What are other threats to sales order entry? (sales order)
1.Inaccurate or invalid master data
2.Unauthorized disclosure of sensitive information
3.Loss or destruction of data
4.Poor performance
What tasks happen during shipping?
•Pick and pack the order
•Ship the order
Who creates the bill of lading?
Receipt issued by the carrier
Materials Requirements Planning (MRP)
an approach to inventory management that seeks to reduce required inventory levels by
improving the accuracy of forecasting techniques to better schedule purchases to
satisfy production needs
Just-In-Time
, A system that minimizes or virtually eliminates inventories by purchasing and producing
goods only in response to actual, rather than foretasted, sales.
Accruals
entries made at the end of the accounting period to reflect events that have occurred
but for which cash has not yet been received or disbursed
Accruals Example
Example
The recording interest revenue earned and wages payable
Deferrals
entries made at the end of the accounting period to reflect the exchange of cash prior to
performance of the related event
Deferrals Example
Recognizing advance payments from customers as a liability and recording certain
payments as prepaid
Estimates
Entries that reflect a portion of expenses expected to occur over a number of
accounting periods
Estimates Example
Depreciation and bad-debt Expenses
Revaluations
Entries made to reflect differences between actual and recorded value of an asset or
change in accounting principle
Revaluations Example
