Accounting information system

Distinguish between packing slip, shipping notice and bill of lading

The purpose of the sales invoice is to

• bill the customer

• transfer goods from seller to shipper

• select items from inventory for shipment

• record reduction of inventory

what are the three rules that ensure that no single employee or department processes a transaction in its entirety?

the revenue cycle consists of

• one subsystem-order entry

• two subsystems-sales order processing and cash receipts

• two subsystems-order entry and inventory control

• three subsystems-sales order processing, credit authorization, and cash receipts

A clerk embezzles payments on account and covers up the theft by making an adjustment to the accounts receivable ledger. Describe a specific internal control procedure that would prevent this fraud?

usually specific authorization is required for all of the following except

• sales on account which exceed the credit limit

• sales of goods at the list price

• a cash refund for goods returned without a receipt

• write off of an uncollectible account receivable

Goods are shipped to a customer, but the shipping department does not notify billing and the customer never receives an invoice. Describe a specific internal control procedure that would detect this error

In an integrated cash receipts system, which of the following is not a task of the mail room clerk ?

• prepare deposit slips

• open envelopes

• prepare remittance list

• make bank deposit

What is the objective of re-engineering ?

The adjustment to accounting records to reflect the decrease in inventory due to a sale occurs in the

• shipping department

• warehouse

• inventory control department

• billing department