Question 1

Electronic bill presentment and payment (EBPP) systems are B2B systems that use a Web site to post customers' bills and to receive their electronic payments.

Accepted Answer

Electronic bill presentment and payment (EBPP) systems are not exclusively B2B; they are used in both B2B and B2C contexts to present bills and receive payments electronically.

Question 2

Float, when applied to cash receipts, is the time between payment by customer and the availability of funds on deposit and available for use.

Accepted Answer

Float refers to the time lag between the payment made by the customer and the availability of funds on deposit, which can be used by the company.

Question 3

A purchasing statement is a business document designed to inform the payee of the invoices or other items being paid.

Accepted Answer

A purchasing statement is a document designed to inform the purchaser of the items being purchased, not the payee of the invoices being paid.

Question 4

The credit department uses accounts receivable master data to complete several of their activities.

Accepted Answer

The credit department relies on accounts receivable master data to carry out activities such as assessing creditworthiness of customers, managing outstanding invoices, and monitoring collections.

Question 5

In a balance-forward accounts receivable system, customer statements display previous balance, payments, and balance forward to which are added any new charges to derive the total balance due.

Accepted Answer

In a balance-forward accounts receivable system, customer statements do display previous balance, payments, and balance forward to which are added any new charges to derive the total balance due.

Question 6

The accounts receivable master data is a repository of all unpaid invoices issued by an organization and awaiting final disposition.

Accepted Answer

The statement accurately describes the purpose of accounts receivable master data.

Question 7

The three types of accounts receivable systems discussed in the text are the lockbox, balance-forward, and open-item systems.

Accepted Answer

The answer of The three types of accounts receivable systems...

Question 8

Although both the treasurer and controller functions report to the VP of Finance, for good internal control, these functions should be segregated.

Accepted Answer

Segregation of duties is a key internal control principle that helps prevent errors and fraud. Separating the roles of treasurer and controller ensures that no single person has too much control or responsibility over financial activities, reducing the risk of mistakes or misconduct.

Question 9

The goal for treasurers, who are responsible for managing an organization's cash resources, is to make funds available so that they can be used to acquire revenue-generating assets, be invested to earn interest, or be used to reduce debt, thus saving interest charges.

Accepted Answer

This statement correctly describes the goal of treasurers. They aim to effectively manage the organization's cash resources to optimize cash flow and generate the maximum return on investment. This can involve investing surplus funds, paying off debt, or funding revenue-generating assets such as new projects or acquisitions.

Question 10

The B/AR/CR process completes the order to cash process by accomplishing the activities of billing customers, managing customer accounts, and securing payment for goods and services rendered.

Accepted Answer

The B/AR/CR process stands for Billing/Accounts Receivable/Cash Receipts process which is responsible for billing customers, managing customer accounts, and securing payment for goods and services rendered, hence completing the order to cash process.

Question 11

Database systems are Internet based systems for sending bills/invoices to customers and receiving the customer payment electronically.

Accepted Answer

Database systems are software systems that help users store and retrieve data efficiently. While these systems can be used for billing and payment processing, they are not inherently internet-based systems.

Question 12

The acronym EFT stands for electronic funds transfer.

Accepted Answer

The acronym EFT does indeed stand for electronic funds transfer.

Question 13

The sales event data store contains invoice records.

Accepted Answer

The description clearly states that the sales event data store contains invoice records.

Question 14

In a post-billing system, invoices are prepared upon acceptance of the customer order.

Accepted Answer

In a pre-billing system, invoices are prepared upon acceptance of the customer order, whereas in a post-billing system, invoices are prepared after the product or service has been delivered.

Question 15

An invoice is a business document-either paper or electronic transmission-used to notify the customer of an obligation to pay the seller for merchandise which was ordered and shipped.

Accepted Answer

An invoice is indeed a business document used to notify a customer of the obligation to pay the seller for merchandise that was ordered and shipped. It can be in the form of either paper or electronic transmission.

Question 16

Funds on deposit and available for use are known as good funds.

Accepted Answer

Good funds refer to funds that have been deposited and are available for use, typically for things like making purchases or paying bills. It's a term commonly used in banking and financial transactions.

Question 17

The AR master file address is a postal address, maintained by the firm's bank, which is used solely for the purpose of collecting checks.

Accepted Answer

The AR master file address typically refers to the address in a company's accounts receivable system where customer billing information is maintained, not specifically a postal address for collecting checks maintained by the firm's bank.

Question 18

In a pre-billing system, invoices are prepared after the goods have been shipped and the sales order notification has been matched to the shipping's billing notification.

Accepted Answer

In a pre-billing system, invoices are prepared before the goods are shipped, not after. This system often involves generating an invoice based on the sales order before the shipping process begins.

Question 19

In an open-item accounts receivable system, customer statements display invoices (new or settled in the current period), along with payment details.

Accepted Answer

In an open-item accounts receivable system, customer statements display invoices (new or settled in the current period), along with payment details. This allows customers to review their account activity and identify any discrepancies or issues.

Question 20

Recording B/AR/CR event data is generally the responsibility of the treasury department, which typically reports to the controller function.

Accepted Answer

Recording B/AR/CR event data is generally the responsibility of the accounting or finance department, which typically reports to the controller function. The treasury department is responsible for managing the company's cash and liquidity.

Quiz 11: The Billingaccounts Receivablecash Receipts Barcr Process