Question 1

Digital images:

Accepted Answer

Digital images can help reduce paper in the billing, accounts receivable, and accounts payable systems. These images can include scans of checks and remittance advices. Therefore, option D is the correct answer.

Question 2

The B/AR/CR process completes the:

Accepted Answer

B/AR/CR stands for Billings, Accounts Receivable, and Cash Receipts, which are all components of the order-to-cash process. The order-to-cash process involves fulfilling customer orders, billing for those orders, collecting payment, and recording the transaction in the company's financial records. Therefore, the B/AR/CR process completes the order-to-cash process.

Question 3

The B/AR/CR process comprises three different but related processes-namely,billing,accounts receivable,and cash receipts.Which of the following would not be an operations process goal for these three processes?

Accepted Answer

The answer of The B/AR/CR process comprises three different but...

Question 4

The accounts receivable system typically used by utilities is the:

Accepted Answer

The balance-forward system is the most commonly used system in the utility industry, where the customer is billed for the total amount due for the billing period. This system is efficient and allows the customer to make one payment for all their services. It also simplifies the billing process for the utility company.

Question 5

In the cash receipts process,the control plan of immediately endorsing incoming checks is designed to achieve the control goal of:

Accepted Answer

Immediately endorsing incoming checks is primarily aimed at ensuring the security of the cash asset by limiting the possibility of unauthorized use or misappropriation of the checks before they are deposited into the bank.

Question 6

A remittance advice generally would be recorded in which of the following pairs of data stores?

Accepted Answer

A remittance advice is a document that accompanies a payment from a customer and provides information about the payment made. This information is typically recorded in the cash receipts data store, which tracks all cash received by the organization. The remittance advice is then used to update the accounts receivable master data store, which maintains information about all amounts owed to the organization by its customers. Therefore, the correct pair of data stores for recording a remittance advice is cash receipts data and accounts receivable master data.

Question 7

Placing a customer's bills on a company's own Web site and sending an e-mail telling the customer that his or her bill is there is called:

Accepted Answer

Electronic bill presentment is the process of placing a customer's bills on a company's own website and notifying the customer via email that their bill is available for viewing online. This allows customers to access and review their bills at their convenience and saves paper and postage costs for the company. Electronic funds transfer (A) is the process of transferring funds electronically from one account to another. Electronic bill payment (C) is the process of paying bills electronically via online banking or other electronic payment services. Electronic document management (D) refers to the process of digitally managing and storing documents for easy access and retrieval.

Question 8

Which of the following statements is true?

Accepted Answer

In a pre-billing system, accurate inventory records are crucial because invoices are generated based on the sales order before shipping, necessitating precise tracking of inventory to ensure availability and accurate billing.

Question 9

Which of the following is not part of the horizontal information flows of the B/AR/CR process?

Accepted Answer

The answer of Which of the following is not part...

Question 10

Which of the following segregation of duties is not required for the B/AR/CR business process controls to be effective?

Accepted Answer

All of these segregation of duties are required for the B/AR/CR business process controls to be effective. Price authorization and billing should be separated to ensure that prices are set appropriately and accurately billed, treasury and controllership should be separated to ensure that there is proper control over cash and financial reporting, and bank reconciliation and cash receipts should be separated to ensure that all cash transactions are accurately recorded and reconciled.

Question 11

Which of the following statements is false?

Accepted Answer

Cash receipts events data are comprised of one or more cash receipts records, not invoice records.

Question 12

Which of the following is most commonly associated with the treasury function?

Accepted Answer

The treasury function is primarily responsible for managing the company's cash and ensuring its security, which includes protecting against fraud and theft. This function also oversees banking relationships and manages investments to maximize returns while maintaining liquidity. While the other options (recording of event data, reporting of results of business events, and maintaining accounting records) are all important aspects of finance, they are not specifically associated with the treasury function.

Question 13

In the billing process,the control plan of review shipped not billed sales orders (tickler file)helps to ensure:

Accepted Answer

The control plan of reviewing shipped but not billed sales orders helps to ensure timely billing, which is an important factor in ensuring the effectiveness of operations. This control plan is not related to efficient employment of resources or security of resources, nor is it directly related to input accuracy.

Question 14

The technology that allows information on documents to be converted into machine-readable data through a scanner is called a(n):

Accepted Answer

OCR stands for optical character recognition, which is the technology that allows scanned images of text to be converted into searchable and editable text on a computer. MICR (magnetic ink character recognition) is a technology that uses magnetic ink to read printed characters, typically found on checks. Bar code readers and digitizers are not specifically designed for converting document text into machine-readable data.

Question 15

Which of the following statements is false?

Accepted Answer

From the standpoint of reducing the collector's float, a debit card is a better payment method than a customer check as the funds are immediately transferred and available for use.

Question 16

The accounts receivable system in which all the accounts receivable master data contains individual open invoices,against which payments and other adjustments are applied:

Accepted Answer

In an open-item system, each customer account maintains a record of individual open invoices, and all payments and adjustments are specifically applied to those invoices. This allows for better tracking of outstanding receivables and helps to ensure accuracy in customer balances. Pre-billing and post-billing systems are not related to the structure of the accounts receivable system, and a balance-forward system maintains a running total of all transactions, rather than tracking individual invoices.

Question 17

The billing system in which the invoice is prepared after goods have been shipped and the sales order notification has been matched to shipping's billing notification is called a(n):

Accepted Answer

In a post-billing system, the invoice is generated after goods have been shipped and the sales order has been matched to shipping's billing notification. This is different from a pre-billing system where the invoice is generated before the goods are shipped. Open-item and balance-forward systems refer to different methods of tracking and resolving outstanding balances, and are not directly related to the billing process. Therefore, the best choice is A) post-billing system.

Question 18

A billing system that can be used when there is little or no delay between the receipt of the customer order and the shipment of the goods is a:

Accepted Answer

A pre-billing system would be the best choice as it allows for the billing process to occur before the goods are shipped, ensuring that the customer is aware of the invoice and can provide payment promptly. This is particularly useful when there is little or no delay between the receipt of the customer order and the shipment of the goods.

Question 19

Quantities of items shipped to a customer would typically be found in the relational table for:

Accepted Answer

Quantities of items shipped to a customer are part of the sales transaction and would be recorded in the SALES_RELATIONS table, which tracks sales orders, shipments, and invoicing. The CUSTOMERS table would have information about the customer's contact details, while the BANKS and DEPOSITS tables would typically store financial transaction data related to payments and deposits.

Question 20

An overall management objective is to:

Accepted Answer

The overall management objective should be to minimize the time from the beginning of the selling process to the end of the cash collections process as this ensures timely cash flow and efficiency in the sales process. Minimizing the number of sales transactions or the total amount of accounts receivable may not be feasible as it may limit the company's revenue generation. Maximizing the amount of float may not be an ideal objective as it can result in delayed cash collections and increase the risk of fraud.

Quiz 11: The Billingaccounts Receivablecash Receipts Barcrprocess

Digital images:

The B/AR/CR process completes the:

The B/AR/CR process comprises three different but related processes-namely,billing,accounts receivable,and cash receipts.Which of the following would not be an operations process goal for these three processes?

The accounts receivable system typically used by utilities is the:

In the cash receipts process,the control plan of immediately endorsing incoming checks is designed to achieve the control goal of:

A remittance advice generally would be recorded in which of the following pairs of data stores?

Placing a customer's bills on a company's own Web site and sending an e-mail telling the customer that his or her bill is there is called:

Which of the following statements is true?

Which of the following is not part of the horizontal information flows of the B/AR/CR process?

Which of the following segregation of duties is not required for the B/AR/CR business process controls to be effective?

Which of the following statements is false?

Which of the following is most commonly associated with the treasury function?

In the billing process,the control plan of review shipped not billed sales orders (tickler file) helps to ensure:

The technology that allows information on documents to be converted into machine-readable data through a scanner is called a(n) :

Which of the following statements is false?

The accounts receivable system in which all the accounts receivable master data contains individual open invoices,against which payments and other adjustments are applied:

The billing system in which the invoice is prepared after goods have been shipped and the sales order notification has been matched to shipping's billing notification is called a(n) :

A billing system that can be used when there is little or no delay between the receipt of the customer order and the shipment of the goods is a:

Quantities of items shipped to a customer would typically be found in the relational table for:

An overall management objective is to: