Question 111 pts

Which of following functions should be segregated?

Group of answer choices

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 121 pts

Which document is not prepared by the sales department.

Group of answer choices

Stock release

Shipping notice

Bill of lading

Packing sip

Question 131 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

Group of answer choices

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

Question 141 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

Group of answer choices

I only

II only

Both I and II

Neither I nor II
Question 151 pts

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

Group of answer choices

Credit Department; Credit Department

Sales Department; Sales Department

Credit Department; Sales Department

Sales Department; Credit Department

Question 161 pts

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

Group of answer choices

Warehouse Department

Receiving Room

Shipping Department

Billing Department

Question 171 pts

The revenue cycle consists of

Group of answer choices

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 181 pts

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

Group of answer choices

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 191 pts

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

Group of answer choices

prepares checks

reviews the supporting documents for completeness and accuracy

marks the supporting documents paid

approves the liability

Question 201 pts

Which of the following is true?

Group of answer choices

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.