BUSINESS INFORMATION SYSTEMS FOR BUSINESS - DIAGNOSTIC QUESTIONS

The term 2%/10Net30 shows that

A. payment is due within 30 days of receipt of the invoice
B. a 10% discount may be taken
C. payment is made within 2 days of receiving the invoice.
D. payment is processed online

The most common method of invoice verification is a three-way match between

A. the purchase order, the goods receipt or packing list, and the invoice.
B. the sales order, the goods receipt or packing list, and the invoice.
C. the purchase order, the goods issue or packing list, and the invoice.
D. the sales order, the goods receipt or delivery document , and the invoice.

Which of the following is a longer-term agreement between an organization and a

vendor ?
A. outline purchase agreement
B. source list
C. purchase prequisition
D. quotation

Which of the following is used to move goods from one location to another within
the organization ?
A. A stock transfer
B. A goods receipt
C. A goods movement
D. A goods issue

Companies use a goods issue when

A. materials are removed from storage
B. materials are restricted
C. materials are added in storage
D. materials are bought from vendors

The key data in the purchasing view are the goods receipt processing time, the
delivery tolerance and ...
A. the purchasing group
B. the sales group
C. the material master
D. the purchasing information

An intersection of material and vendor data is ...

A. A purchasing info record
B. A purchasing requisition
C. A goods receipt
D. A goods issue

Under a subcontracting arrangement, a company sends materials to a vendor ...

A. to create semi-finished products
B. to create finished products
C. to create raw materials
D. to create trading products

Which of the following records data related to a goods movement ?

A. A material document
B. A delivery document
C. An invoice document
D. An accouting document

A source list is known as

A. a list of vendors
B. a list of customers
C. a list of materials
D. a list of purchase orders

An organizational entity which grants and monitors a credit limit for customers is
related to the term?
A. Credit Control Area
B. Company Code
C. Sales Organization
D. Distribution Channel

The way in which products or services reach the customer is related to the term?
A. Distribution Channel
B. Sales Organization
C. Credit Control Area
D. Company Code

Which of the following data are the additional organizational data and are relevant
to purchasing?
A. Purchasing group, purchasing organization, storage locations
B. Purchasing locations, purchasing group, purchasing organization
C. Purchasing locations, purchasing group, storage organization
D. Storage organization, storage locations, purchasing group

Which of the following is the correct sequence of steps in the Procurement Process?

A. Create Requisition, Create & Send PO, Receive Shipment, Receive Invoice, Send
Payment
B. Create & Send PO, Receive Requisition, Receive Shipment, Receive Invoice, Send
Payment
C. Create & Send PO, Receive Shipment, Create Requisition, Receive Invoice, Send
Payment
D. Create Requisition, Create & Send PO, Receive Customer Acknowledgment, Receive
Shipment, Receive Invoice

Which of the following documents are the transaction data generated from order-to-
cash process?
A. Customer inquiry, Quotation, Sales order, Outbound delivery document, Packing
list, Goods issue, Invoice, Confirmation of Payment.
B. Purchase requisition, Request for quotation, Quotation, Purchase order, Goods
receipt, Packing list, Invoice, Confirmation of payment.
C. Purchase requisition, planned order, production order, goods receipt, goods
issue.
D. Purchase requisition, planned order, production order, packing list

In the procure-to-pay process, GBI receive invoice from supplier, before making a
payment, accounting department need to verify which of the following documents
(also called three-way matching)
A. Invoice, Goods receipt, Purchase order
B. Quotation, Inquiry, Invoice
C. Sales order, Outbound delivery document, Invoice, Confirmation of payment
D. Invoice, Goods receipt, confirmation of payment

Which of the following statements about a plant is not true?

A. A plant can be assigned to more than one company code
B. A company code can have more than one plant
C. A plant is a key organizational element in purchasing
D. A plant can be assigned to only one company code

Which of the following statements regarding the fulfillment process is NOT true?
A. A sales order must be created with reference to a quotation
B. One delivery document can be created from multiple sales order documents.
C. An accounting document is created when a goods issue is posted.
D. A quotation can generate multiple sales order

A purchasing organization is involved in all of the following operations except

A. Determining storage locations within the plant
B. Negotiating contracts and agreements
C. Negotiating pricing with vendors
D. Evaluating and identifying vendors

Frame, Nuts and bolts are examples of

A. Raw Materials
B. Senifinished Goods
C. Trading Goods
D. Finished Goods

The term HAWA is known as

A. Trading goods
B. Raw Materials
C. Senifinished Goods
D. Finished Goods

Which of the following is used to describe the ways that users can view and analyze
both transaction and historical data?
A. Reporting
B. business intelligence
C. online list
D. work list

Which of the following capture and store specified transaction data in an

aggregated and summarized form
A. Information structures
B. OLAP
C. OLTP
D. work list

Which of the following are the objects for which data are collected?
A. Characteristics
B. Transaction documents
C. online lists
D. work lists

Which of the following is called an enterprise consisting of many subsidiaries?

A. a client
B. a company code
C. a plant
D. an office

Warehouses is an example of
A. Organizational data
B. Master data
C. Transaction data
D. Purchasing data
An office is an example of
A. a plant
B. a client
C. a company code
D. a warehouse

Packing lists is an example of

A. Transaction documents
B. FI documents
C. CO documents
D. Material documents

Which of the following are typically produced from other materials?

A. HALB
B. ROH
C. FERT
D. HAWA

Choose a WRONG process:

A. Create sales order ==> Pick and pack ==> Receive payment ==> Create and send
invoice
B. Create sales order ==> Prepare shipment ==> Send shipment ==> Create and send
invoice
C. Receive customer purchurse order ==> Create sales order ==> ship and pack
D. Prepare shipment ==> ship ==> Create and send invoice

"Internet sales" is an example of

A. Distribution channel
B. Distribution chain
C. Division
D. Sales area

A sales area is a unique combination of Distribution channel, Division and ...

A. Sales organization
B. Company code
C. Plant
D. Client

An examples of online lists is

A. List of sales orders for a specific combination of customers and materials
B. List of sales orders that are scheduled to be shipped by a specific date.
C. List of sales orders that have been shipped but not billed.
D. List of sales orders for materials or customers

In the ERP system, the final task in shipping is to ...

A. post goods issue
B. pick and pack
C. pack and load
D. create invoice

Which of the following is recorded in the system, which triggers processes in

accounting?
A. a goods issue
B. a delivery document
C. a accounting document
D. a quotation

Which of the following involves moving the materials from the plant onto the truck?
A. Loading
B. Good issue
C. Backward scheduling
D. Forward scheduling

The customer who submits the order is known as ...

A. the sold-to party
B. payer
C. the ship-to party
D. the bill-to party

"minimum quantities" is an example of

A. Sales organization data
B. Master data
C. Sales plant data
D. Organizational data

A unique combination of a sales organization and distribution channel is called ...

A. a distribution chain
B. a company code
C. a plant
D. a client

Which term refers to all of the activities involved in buying or acquiring the
materials used by the organization, such as raw materials needed to make products?
A. Procurement Process
B. Material Planning
C. Production Process
D. Fulfillment Process

Which of the following is a form of invoice verification?

A. Three-way match
B. Invoice inspection
C. Quality management
D. Invoice checking

The term materials NOT encompasses which of the following?

A. Accounting
B. Products
C. Components to produce finished goods
D. Anything used in an organization

Which of the following business processes is mentioned in the below statement?

“…is used to store and track the materials”
A. Inventory and warehouse management (IWM)
B. Business Planning
C. Project Management
D. Material Planning

Which of the following documents are the transaction data that are generated from
procure-to-pay process?
A. Purchase requisition, Request for quotation, Quotation, Purchase order, Goods
receipt, Packing list, Invoice, Confirmation of payment.
B. Customer inquiry, Quotation, Sales order, Outbound delivery document, Packing
list, Goods issue, Invoice, Confirmation of Payment.
C. Purchase requisition, planned order, production order, goods receipt, goods
issue.
D. Quotation, Purchase order, Goods receipt, Packing list, Invoice, Confirmation of
payment.
____________ is to capture and record all data generated by the execution of
business process steps that have a financial accounting impact.
A. General ledger accounting
B. Accounts receivable accounting
C. Asset accounting
D. Accounts Payable accounting

A knowledge worker doesn't need to have which of the following skills?

A. Computer programming
B. Strategic thinking
C. Communication and collaboration
D. Information literacy

Which of the following statement is WRONG?

A. Invoice can not be retrieved and displayed from the document flow.
B. The document flow is updated after each process step is completeD.
C. A document flow displays all of the documents associated with the steps that
have been completed for a single customer inquiry or order.
D. The document flow essentially displays the history and status of the sales
order.

Which of the following is the correct sequence of steps in the Procurement Process?

A. Create Requisition, Create & Send PO, Receive Shipment, Receive Invoice, Send
Payment
B. Create & Send PO, Receive Requisition, Receive Shipment, Receive Invoice, Send
Payment
C. Create & Send PO, Receive Shipment, Create Requisition, Receive Invoice, Send
Payment
D. Create Requisition, Create & Send PO, Receive Customer Acknowledgment, Receive
Shipment, Receive Invoice

Which of the following statement is WRONG?

A. Accounts receivables accounting is used to record the financial impacts of
business process steps.
B. Accounts payable accounting is associated with the procurement process.
C. General ledger (GL) contains much of the data needed for financial reporting.
D. Bank ledger accounting is concerned with recording data associated with bank
transactions.

In the fulfillment process, which of the following steps has an impact on

financials?
A. Send shipment, receive customer payment
B. Receive customer inquiry, send quotation
C. Send quotation
D. Receive customer purchase order

What is a storage location?

A. The place within a plant where materials are kept until they are needed
B. The place where raw materials are received
C. The place where materials are collected for staging and inspection
D. The place within a plant where machines are installed for production purposes

What function does the warehouse perform in the fulfillment process?

A. Prepares and sends the shipment to the customer
B. Communicates data related to the order to other parts of the organization
C. Tracks the order
D. Notifies the customer
Ben & Jerry’s: “Making the best ice cream in the nicest possible way”. This is a
A. vision statement
B. mission statement
C. objective statement

Apple's “We believe that we are on the face of the earth to make great products,
and that's not changing.”. This is a
A. mission statement
B. vision statement
C. objective statement
D. core value

Starbucks' : "To inspire and nurture the human spirit – one person, one cup and one
neighborhood at a time". This is a
A. mission statement
B. vision statement
C. objective statement
D. core value

Apple's: "To make the best products on earth and to leave the world better than we
found it."
A. vision statement
B. mission statement
C. objective statement
D. core value

Contains all of the information necessary for processing orders, deliveries,

invoices and customer payment:
A. Customer Master Data
B. Transaction Data
C. Material Data
D. Organization Data

Pre-sales documents:
A. Inquiries and Quotations
B. Inquiries and Sales Order
C. Sales Order and Invoice
D. Sales Order and Quotations

A customer’s request to a company for information or quotation in respect to their

products or services without obligation to purchase:
A. An inquiry
B. A quotation
C. An invoive
D. A sales order

The shipping process begins when you create the ...

A. delivery document
B. invoice document
C. sales order
D. accounting document

The final step in the sales order process is

A. payment
B. picking
C. loading
D. shipping
Which of the following does not impact on financial accounting?
A. Purchase requisition
B. Invoice document
C. Goods receipt
D. Accounting document

Which of the following impacts on financial accounting?

A. Good Receipt
B. Purchase order
C. Sales order
D. Purchase quotation