AIS Exam Study Guide With 100%
Correct Answers
To minimize the risk of theft of consumer remittances, the person who handles and deposits
customer payments can also
a) authorize credit memos
b) none of these activities can be performed by the person who handles and deposits customer
payments
c) post adjustments to accounts receivable
d) reconcile the bank statements - CORRECT ANSWER✔✔b) none of these activities can be
performed by the person who handles and deposits customer payments
Which of the following controls could be used to mitigate the threat of uncollectible accounts?
a)Credit limits.
b)Restriction of physical access to inventory.
c)Restriction of access to pricing master data.
d) Encryption. - CORRECT ANSWER✔✔a)Credit limits.
,Restricting physical access to inventory is designed to minimize the threat of
a)failure to bill
b)picking the wrong items or the wrong quantity
c)theft of inventory
d)shipping errors - CORRECT ANSWER✔✔c)theft of inventory
Which control procedure is designed to minimize the threat of posting errors to accounts
receivable?
a)approval of credit memos by the credit manager
b)separation of the shipping and billing functions
c)mailing of monthly statements to customers
d)aging of accounts receivable
e)all of these controls minimize the threat of posting errors to accounts receivable - CORRECT
ANSWER✔✔c)mailing of monthly statements to customers
A legal contract that defines responsibility for goods while they are in transit is called
a) an invoice.
b) a picking ticket.
c) a packing slip.
d) a bill of lading. - CORRECT ANSWER✔✔d) a bill of lading.
Which of the following is a threat to the shipping process?
a) Stockouts or excess inventory.
, b) Inaccurate or invalid credit memos.
c) Picking the wrong items or the wrong quantity.
d) Incomplete/inaccurate orders. - CORRECT ANSWER✔✔c) Picking the wrong items or the
wrong quantity.
Which of the following is used to change a customer's accounts receivable balance?
a)bill of lading
b)sales order
c)picking list
d)packing slip
e)sales invoice - CORRECT ANSWER✔✔e)sales invoice
Which control would help reduce the threat of cash flow problems?
a)All of these controls reduce the threat of cash flow problems
b)Having the person who opens the mail immediately create a list of all customer payments
received
c)Prompt, restrictive endorsement of all customer checks
d)None of these controls reduce the threat of cash flow problems
e)Lockbox arrangements - CORRECT ANSWER✔✔e)Lockbox arrangements
What is financial electronic data interchange (FEDI)?
Correct Answers
To minimize the risk of theft of consumer remittances, the person who handles and deposits
customer payments can also
a) authorize credit memos
b) none of these activities can be performed by the person who handles and deposits customer
payments
c) post adjustments to accounts receivable
d) reconcile the bank statements - CORRECT ANSWER✔✔b) none of these activities can be
performed by the person who handles and deposits customer payments
Which of the following controls could be used to mitigate the threat of uncollectible accounts?
a)Credit limits.
b)Restriction of physical access to inventory.
c)Restriction of access to pricing master data.
d) Encryption. - CORRECT ANSWER✔✔a)Credit limits.
,Restricting physical access to inventory is designed to minimize the threat of
a)failure to bill
b)picking the wrong items or the wrong quantity
c)theft of inventory
d)shipping errors - CORRECT ANSWER✔✔c)theft of inventory
Which control procedure is designed to minimize the threat of posting errors to accounts
receivable?
a)approval of credit memos by the credit manager
b)separation of the shipping and billing functions
c)mailing of monthly statements to customers
d)aging of accounts receivable
e)all of these controls minimize the threat of posting errors to accounts receivable - CORRECT
ANSWER✔✔c)mailing of monthly statements to customers
A legal contract that defines responsibility for goods while they are in transit is called
a) an invoice.
b) a picking ticket.
c) a packing slip.
d) a bill of lading. - CORRECT ANSWER✔✔d) a bill of lading.
Which of the following is a threat to the shipping process?
a) Stockouts or excess inventory.
, b) Inaccurate or invalid credit memos.
c) Picking the wrong items or the wrong quantity.
d) Incomplete/inaccurate orders. - CORRECT ANSWER✔✔c) Picking the wrong items or the
wrong quantity.
Which of the following is used to change a customer's accounts receivable balance?
a)bill of lading
b)sales order
c)picking list
d)packing slip
e)sales invoice - CORRECT ANSWER✔✔e)sales invoice
Which control would help reduce the threat of cash flow problems?
a)All of these controls reduce the threat of cash flow problems
b)Having the person who opens the mail immediately create a list of all customer payments
received
c)Prompt, restrictive endorsement of all customer checks
d)None of these controls reduce the threat of cash flow problems
e)Lockbox arrangements - CORRECT ANSWER✔✔e)Lockbox arrangements
What is financial electronic data interchange (FEDI)?
