Question 11

1 / 1 pts

Which of following functions should be segregated?

  

opening the mail and recording cash receipts in the journal

  

authorizing credit and determining reorder quantities

  

shipping goods and preparing the bill of lading

  

providing information on inventory levels and reconciling the bank statement

Question 12

1 / 1 pts

Which document is not prepared by the sales department.

  

Stock release

  

Shipping notice

  
Bill of lading

  

Packing sip

Question 13

1 / 1 pts

In a well-designed internal control structure in which the cashier receives remittances from the mail
room, the cashier should not a. supervisors verify the accuracy of employee timecards

  

Endorse the check

  

Post the receipts to the accounts receivable subsidiary ledger cards

  

Prepare the bank deposit slip

  

Deposit remittances daily at a local bank

IncorrectQuestion 14

0 / 1 pts

Which of the following involves a theft of receivables followed by a delay in the posting of credits to
specific customer accounts?

I. Lapping
II. Kiting

  

I only

  

II only

  

Both I and II

  

Neither I nor II

IncorrectQuestion 15

0 / 1 pts

In a revenue cycle which of the following departments prepares the sales order and approves the
customer for credit, respectively?

  

Credit Department; Credit Department

  

Sales Department; Sales Department

  

Credit Department; Sales Department

 
   

Sales Department; Credit Department

Question 16

1 / 1 pts

Within proper segregation of duties for the revenue cycle, which of the following departments
represents an example of custody? 

  

Warehouse Department

  

Receiving Room

  

Shipping Department

  

Billing Department

IncorrectQuestion 17

0 / 1 pts

The revenue cycle consists of

  

two subsystems-order entry and inventory control

 
   

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

  

two subsystems-sales order processing and cash receipts

  

one subsystem-order entry

Question 18

1 / 1 pts

Which one of the following situations represents a strength in the internal control for purchasing and
accounts payable?

  

Prenumbered receiving reports are issued randomly.

  

Vendors’ invoices are matched against purchase orders and receiving reports before a liability is
recorded.

  

The purchasing department reconciles the accounts payable subsidiary vendor ledger with the general
ledger control account

  

Unmatched receiving reports are reviewed on an annual basis.

 

  

Invoices are approved for payment by the purchasing department.

Question 19

1 / 1 pts

Which of the following tasks should the cash disbursement clerk NOT perform?

  

prepares checks

  

reviews the supporting documents for completeness and accuracy

  

marks the supporting documents paid

  

approves the liability

IncorrectQuestion 20

0 / 1 pts

Which of the following is true?

  

The cash disbursement function is part of the general ledger department.

 
   

The cash disbursement function is part of accounts payable.

  

Cash disbursements is a treasury function.

  

Cash disbursements is an independent accounting function.