AIS - Midterm

The ________ normally triggers the billing process in the revenue cycle.

• sales order received from the sales department

• picking ticket received from the sales department

• packing slip received from the shipping department

• journal voucher received from the shipping department

The ________ should always be included with a

merchandise shipment to a customer.

• picking ticket

• packing slip

• sales invoice

• remittance advice

When a customer places an order (on account) for a certain product, what should be done before the order is checked for inventory availability?

• The customer's available credit should be checked.

• The sales order should be created and written to a file.

• Shipping should be notified of an order in process.

• A picking list should be generated for the warehouse.

Special software packages called ________ can help an

organization manage customer service.

• EDI systems

• CRM systems

• POS systems

• VMI systems

Two documents usually accompany goods shipped to a customer. What are the two documents?

• a bill of lading and an invoice

• a packing slip and a bill of lading

• an invoice and a packing slip

• an invoice and a sales order

The activities involved in soliciting and processing customer orders within the revenue cycle are known as the

• sales order entry process.

• shipping order process.

• revenue process.

• marketing process.

It costs ________ times as much to acquire a new customer as it does to make a sale to an existing customer.

• two

• five

• eight

• ten

A monthly statement sent to customers serves a control purpose by

• providing an opportunity for customers to verify the balance owed and activity on the account.

• triggering the process to record a customer payment.

• summarizing invoices and amounts due for customers.

• reminding customers of the balance due and due date.

Which of the following is not one of the controls when

customer payments are commingled with other mail?

• preparing a remittance list as mail is opened

• restrictively endorsing checks when received

• requiring two mail room clerks to open mail together

• requiring the controller to be personally present when mail is received and opened

The benefits of a lockbox arrangement

with a bank are maximized when

• the bank is located nearby to the company, so remittance advices can be delivered to the company every day.

• several banks around the country are used, in order to minimize the time payments spend in the mail.

• an arrangement is made with only one bank, so all remittance advices can be batched for processing.

• the bank deposits the payments and accesses the customer's information system to record the payments.