Accounting Information Systems Study Set 26

Business

Quiz 5 :

Sales and Collections Business Process

Quiz 5 :

Sales and Collections Business Process

Question Type
search
arrow
The Bob White Karate Studio has been a local fixture for almost 40 years. The studio offer straining in American Kenpo Karate to students from 3 years old to 80 years old. Students select one of several programs: (a) monthly payments, (b) semi-annual payments, or (c) the black belt program. Each of these programs allows them to take group classes as well as one or more private lessons with a qualified black belt instructor, depending on the program selected. For example, the monthly program includes one private lesson, the semi-annual program includes three private lessons, and the black belt program includes one lesson per week until the student attains black belt rank. Additionally, students may purchase additional private lessons, as well as uniforms, sparring gear, and various studio insignia and clothing items. The additional half-hour private lessons are priced as packages, which include 5, 10, 20, 40, or60 lessons, and the price also varies depending on whether the lessons are provided by senior or junior instructors. When students purchase a package, they are assigned to a particular instructor for the duration of the package. Students typically pay for anything that they buy at the time of their purchase, but established students are sometimes allowed to purchase on credit. In that case, they generally must pay within 2 weeks. While all studio employees are also instructors, only a few employees handle sales transactions and accept payments. a. Draw a BPMN activity diagram that describes the Bob White Karate Studio's sales and collection process. b. Prepare a UML class diagram with classes, associations, and multiplicities. c. Using the preceding information and the following attributes list, prepare a listing of the relational tables necessary to support this sales and collection process. List the tables in the following order: resources, events, agents, type images, and linking tables. img
Free
Essay
Answer:

Answer:

Unified modelling language (UML) data models
These are the representation of databases' conceptual contents in a graphical manner and not in a written manner. And this helps the database users to easily understand what the database designers are trying to convey.
Business process model and notation (BPMN) models
It is presentation for specifying business processes in a model of business process graphically. It is developed by business process management initiative. It is used to support both the technical users and business users.
The question here discusses about studio B which has been in the business since 40 years. The studio trains karate to its students in the age range of 3-80. It lets the students to pay monthly, and semi-annually and a black belt program is also available.
Each student can take group classes or a private class as per the program selected. Additional private lessons, uniforms, sparring gears, and clothing items can be bought by students.
The students generally pay at the time of their purchases, but some established students are allowed to make purchases on credit and have to pay the sum within two weeks of the purchase.
Only a few employees handle the payment transactions because most of the employees in the studio are instructors.
a.
BPMN diagram that explains the sales and collection process of the studio is given as follows:
img According to the diagram above, the process starts with the review of the program/packages by the students. And then the student makes selection of the preferred package.
After that, the instructor is assigned to the students, equipment is provided to the student and the selected program is assigned to the student. And, eventually the lessons are provided according the plan selected.
b.
The UML diagram showing the sales and collection process, and association can be made as follows:
img In the above diagram, the multiplicities are allotted to the each of the attributes. The packages assigned to program and the instructor type are related to each other with one-to-many relationship, which means that each package can have many instructor.
Programs and sales are related to each other with a one-to-many relationship, which means that a program can be sold to many students. Inventory and sales are related to each other with a many-to-many relationship, which means that an inventory can be sold many times, and a sale can involve many inventories.
Cash and sales are associated to each other with a one-to-many relationship, which means each sale can be paid in installments. Sale and student are related to each other with a one-to-many relationship, which means that a program can be sold to many students.
Student and employees are related to each other with a one-to-many relationship, which means that an employee can get many students to instruct.
c.
Relational table listed to explain the sales and collection process of the studio is as follows:
Cash [Cash account (PK), cash account balance]
Inventory [Inventory item (PK), inventory item description, inventory item price, inventory item quantity in hand]
Packages [Private lesson package (PK), Lesson package description, Private lesson package price, Instructor type]
Programs [Program (PK), Program description, Program price]
Sales [Sales (PK), Sales amount, Sales date, Sale paid (Y/N), credit card number for the sale, …]
Employees [Employee (PK), Employee name, Employee rank, Instructor type]
Instructor type [Instructor type (PK), quantity of instructors of this type]
Sales- [Sales + inventory type (PK), quantity of this inventory type]
Inventory
Sales- [Sales + private lesson package (PK)]
Packages

Tags
Choose question tag
close menu
arrow
From your experience, describe some business rules that implement internal controls for a sales process.
Free
Essay
Answer:

Answer:

Business rules
These are conditions on how a business is processed, explained and expressed clearly and precisely, guiding on how a business should operate and behave in certain circumstances. They are not modeled but are in a written form.
Business rules are not processes but they can be thought of as control activities as they approve, authorize, verify, reconcile, segregate the duties, and those activities that address risks to achieve objectives of entity.
Some business rules with which internal controls for a sale process are implemented are as follows:
1. The customer should make the payment.
2. Rules regarding the payment options. Only valid options that the business approves should be used to make the payments by the customer.
3. Large bills should be handled immediately. Like the employees of Starbucks keep $20 bills and larger as soon as possible in the safe.
4. Rules regarding practice for theft prevention, by customers and employees both.

Tags
Choose question tag
close menu
arrow
Which of the following sales and collection process activities can result in the creation of an account receivable? a. Receiving a sales order from a customer B) Shipping ordered products to the customer C) Billing the customer D) Recording payment from the customer E) None of the above
Free
Multiple Choice
Answer:

Answer:

Sales and collection process
When products and services are sold by a firm to its customers and in return the customers pay for the product and services, it is a process which involves sales as well as a collection. The sales and collection process covers all the business activities related to selling of product and services, maintenance of customer records, billing and recording payments made by the customers. Managing accounts receivables through aging accounts and authorizing credit also comes under sales and collection process.
In sales and collection process all the accounting transactions are generated that record sales revenue, accounts receivables and receipts in cash. This process also affects those firm's costs of goods sold and inventory that engage in selling merchandise. Sales are generally made in return of cash or credit. It may also include sales tax.
When a sale is made in return for cash, the balance of cash increases and when on credit, the accounts receivables are made which is the money that is owed to the firm from sales of product and services. And finally, when a credit customer pays cash, the cash balance increases and accounts receivables are decrease by the amount paid.
Receiving an order of sales from a customer does not create any accounts receivables. After receiving the order the products are produced first and then delivered. Afterwards the invoice is generated and lastly, sent to the customer.
Thus, option a is incorrect.
When selling is done, the customers are billed as per the quotes decided between the two parties and then after sending invoice the collection is made.
Thus, option c is also incorrect.
Recording of payment is made, when customers actually pay the amount of sales whether sales is made in cash or credit.
Thus, option d is also incorrect.
The option e states that none of the options depicts the activity in respect to the creation of accounts receivables which is also incorrect because the one option is correct out of the all options.
When the ordered finished goods are shipped to the customer and sales is on credit, then the account receivables is created after sending the invoice to the customers.
Thus, the correct option is option
img .

Tags
Choose question tag
close menu
arrow
Draw UML class diagrams for fast-food and traditional restaurants. Discuss similarities and differences. How would you add taking reservations to the second model?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Now draw a collaboration diagram that shows two pools and the message flows between a fast-food restaurant and its customers. How would you change that diagram for a traditional restaurant?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following is not an activity within the sales and collection process? a. Selling products and services B) Billing customers C) Managing inventory D) Recording payments from customers E) All of the above are sales and collection activities.
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following statements is(are) not true? a. Each pool must have a start event. B) Sequence flows are shown by arrows with a solid line. C) Message flows are shown by arrows with a solid line. D) Each pool must have more than one swimlane. E) Both c and d are not true.
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Draw a basic sales activity model using BPMN for a fast-food restaurant. Draw a second basic sales activity model using BPMN for a traditional restaurant. Discuss similarities and differences. How would you add taking reservations to the second model?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
What is the purpose of an intermediate error event? a. Indicates a change in flow due to a process exception B) Indicates the end of a process C) Indicates the start of a collapsed sub process D) Describes the activities that will occur when there is not an error E) None of the above
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
The Beach Dude (BD) employs a legion of current and former surfers as salespeople who push its surfing-oriented products to various customers (usually retail outlets). This case describes BD's sales and collection process. Each BD salesperson works with a specific group of customers throughout the year. In fact, they often surf with their customers to try out the latest surf gear. The BD salespeople act laid-back, but they work hard for their sales. Each sale often involves hours of surfing with their customers while the customers sample all the latest surf wear. Because BD makes the best surfing products, the customers look forward to the visits from the BD salespeople. And, they often buy a lot of gear. Each sale is identified by unique invoice number and usually involves many different products. Customers pay for each sale in full within 30 days, but they can combine payments for multiple sales. BD manages its clothing inventory by item (e.g., XL BD surfer logo T-shirts), identified byproduct number, but it also classifies the items by clothing line (the lines are differentiated by price points as well as the intended use of the clothing, e.g., surfing products, casualwear, etc.). a. Draw a UML class diagram that describes the Beach Dudes sales and collection process. b. Using Microsoft Access, implement a relational database from your UML class diagram. Identify at least three fields per table. c. Describe how you would use the relational database to determine the Beach Dude's accounts receivable.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
What classes and associations would be included in a model that describes the information needed for a query that calculates the accounts receivable balance for each customer? Describe differences in the information for the open-invoice method, where customers pay according to specific invoices, versus the balance-forward method, where customers pay balances on monthly statements.
Essay
Answer:
Tags
Choose question tag
close menu
arrow
How do you implement a one-to-many relationship in a relational database? a. Post a foreign key. B) Create a new table. C) Combine two fields to create a primary keys. D) Create an association. E) None of the above
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
The sales and collection process is the point of contact between the firm and which set of external business partners? a. Investors B) Customers C) Employees D) Vendors E) All of the above
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
The sales and collection process generates revenue, accounts receivable, and cash flow information for a firm's financial statements. What other information do you think managers would like to collect?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
What kinds of businesses collect cash before recording the corresponding sales? How would that different sequence affect internal control requirements?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Using Amazon.com as an example, prepare a collaboration sales activity model. What is the difference between an online process and a traditional brick-and-mortar store process?
Essay
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following describes message flows between pools? a. Orchestrations B) Sequence flows C) Choreography D) Intermediate events E) None of the above
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following is not part of the REA framework? a. Agents B) Type images C) Resources D) Events E) All of the above are part of the REA framework.
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following is not a purpose of a subprocess in BPMN? a. Reducing complexity B) Presenting higher-level process descriptions C) Creating alternative activities D) Developing a reusable model E) All of the above are purposes of subprocesses in BPMN.
Multiple Choice
Answer:
Tags
Choose question tag
close menu
arrow
Which of the following is an example of a business rule implementing access controls? a. The warehouse containing inventory must be locked when the inventory manager is not present. B) User's recording collections cannot modify sales records. C) The computer system shall generate an audit trail. D) Internal auditors shall be used. E) Both a and b are business rules implementing access controls.
Multiple Choice
Answer:
Tags
Choose question tag
close menu