Question 1

Which of the following process bubbles (i.e., activities) would you not expect to see in the logical DFD for a B/AR/CR process?

Accepted Answer

Requisitioning inventory is not directly related to the billing, accounts receivable, or customer payment process. It is more closely related to the inventory management process, which would have its own logical DFD.

Question 2

The principal master data that you would expect to see in a B/AR/CR process is the:

Accepted Answer

The principal master data in the Billing/Accounts Receivable/Cash Receipts (B/AR/CR) process is the accounts receivable. This data tracks the amounts owed by customers, their payment status, and other related information, making it central to managing the financial interactions with customers.

Question 3

Which of the following control plans is most likely to appear in the input validity and input accuracy columns, but not in the input completeness column of a control matrix for the billing process?

Accepted Answer

Checking for authorized prices, terms, freight, and discounts ensures the validity and accuracy of input data, but it does not necessarily guarantee completeness. The other options (A,B,D) focus more on completeness and are therefore more likely to appear in the input completeness column of a control matrix.

Question 4

Inputs to the B/AR/CR process normally could include all of the following except:

Accepted Answer

Customer acknowledgement is not typically an input to the B/AR/CR process. The other options are all commonly used inputs in this process.

Question 5

In a pre-billing system, invoices are prepared:

Accepted Answer

The answer of In a pre-billing system, invoices are prepared:
...

Question 6

In a fraud scheme known as ____, the perpetrator attempts to cover the theft of cash received from customer A by applying cash collected from customer B to A's account, then applying a receipt from C to B's account, and so forth.

Accepted Answer

This describes the process of lapping, where stolen funds from one customer are covered up by using funds from another customer, and then covering up that theft with funds from yet another customer, and so on in a circular pattern. Kiting involves creating artificial balances by moving money between bank accounts, while schmoozing is a social engineering tactic used to trick people into revealing sensitive information. Hacking involves accessing computer systems without authorization.

Question 7

For the cash receipts process, the control plan turnaround documents helps to achieve which of the following pairs of control goals?

Accepted Answer

The answer of For the cash receipts process, the control...

Question 8

Which of the following normally would trigger the billing process in a B/AR/CR process?

Accepted Answer

The billing process in a Business/Accounts Receivable/Cash Receipts (B/AR/CR) process is typically triggered by a shipping notice. This document indicates that goods or services have been shipped or delivered to the customer, which then prompts the generation of an invoice to bill the customer.

Question 9

Which of the following statements regarding Check 21 is false?

Accepted Answer

Check 21 facilitates the electronic exchange of checks but does not require banks to exchange check images; it allows but does not mandate this practice. Banks can choose to exchange electronic images of checks instead of the physical checks themselves to speed up the clearing process.

Question 10

In a logical DFD for a B/AR/CR process, you would expect that a credit memo would be sent by the B/AR/CR process to the customer from which of the following processes?

Accepted Answer

Credit memos are typically associated with the management of customer accounts, as they involve adjusting the amount a customer owes. This process falls under managing customer accounts, where account balances are updated, and adjustments like credit memos are issued.

Question 11

In a B/AR/CR process, which of the following data stores is least likely to interact with a process called "perform billing"?

Accepted Answer

The process of "perform billing" is typically focused on generating invoices and recording payments from customers. Therefore, vendor master data (A) is the least likely to interact with this process, as it primarily relates to information about suppliers and other external entities. Customer master data (B), accounts receivable master data (C), and sales event data (D) are all more directly related to billing activities.

Question 12

In an entity-relationship (E-R) diagram for the B/AR/CR process, you would expect that the word trigger would appear between the boxes for?

Accepted Answer

The trigger word "STOCK PICK" indicates the event that initiates the process of shipping an order.

Question 13

Deposit slips are usually generated by the B/AR/CR process:

Accepted Answer

Deposit slips are usually generated as part of processing cash receipts. When cash or checks are received, a deposit slip is filled out and sent to the bank along with the funds. This process ensures that the funds are properly credited to the company's account. While deposit slips can be generated manually or electronically, the most common way is as part of the process of processing cash receipts.

Question 14

A company using a centralized database approach might not maintain a relational table for ACCOUNTS RECEIVABLE. Rather, accounts receivable balances at any point in time could be computed as the difference between the relations for which of the following continuous events?

Accepted Answer

The accounts receivable balance at any point in time can be computed as the difference between the sales invoices that have been generated and the cash receipts that have been received, hence the best choice is B. The shipments in option A and C, and the customer in option D, are not directly related to accounts receivable balances.

Question 15

In general, adjustments to customer balances in the accounts receivable master data will be necessary for all of the following except:

Accepted Answer

Adjustments for estimates of uncollectible accounts are typically recorded as a provision for doubtful debts in the allowance for doubtful accounts, rather than as direct adjustments to customer balances in the accounts receivable master data. The other options directly affect individual customer balances.

Question 16

One type of accounts receivable system is balance-forward, the other is:

Accepted Answer

The balance-forward system simply carries over the previous balance from the previous period, while the open-item system tracks individual invoices and payments, allowing for more accurate and efficient management of the accounts receivable. The other choices (debit card system, Automated Clearing House system, Electronic Funds Transfer system) refer to payment methods and are not related to the system used for managing accounts receivable.

Question 17

In a logical DFD for a B/AR/CR process, which of the following data stores would you expect to interact with a process called "manage customer accounts"?

Accepted Answer

As the process is named "manage customer accounts," it is likely that it deals with information related to customers' accounts, such as account balances, credit limits, payment terms, etc. This type of information is stored in the accounts receivable master data, which is a data store that would interact with this process. The other data stores listed, such as inventory master data, sales event data, and cash receipts event data, are not directly related to managing customer accounts.

Question 18

An invoice record usually contains all of the following elements except:

Accepted Answer

The customer's credit limit is not typically included in an invoice record as it is a separate financial agreement between the customer and the organization. The other elements listed (customer identification, items and quantities billed, and invoice date) are standard components of an invoice record.

Question 19

Which of the following normally would trigger the B/AR/CR process to record a customer payment?

Accepted Answer

A remittance advice typically includes information about a customer payment, such as the amount and the invoice(s) being paid. This information would trigger the B/AR/CR process to record the payment in the accounting system. A credit memo would typically be recorded on the accounts receivable ledger, but may not necessarily result in a customer payment. A deposit slip is used to record cash and cheques received by a company, but may not include information about specific customer payments. A notice to the general ledger to record a cash receipt does not provide enough information about the customer payment to trigger the B/AR/CR process.

Question 20

Typically, the operations process goals of the B/AR/CR:

Accepted Answer

The operations process goals of the B/AR/CR may vary depending on the organization and its particular view of these processes. Each organization may have different goals or priorities when it comes to these processes, so they may not be the same for all organizations.

Quiz 11: The Billingaccounts Receivablecash Receipts Barcr Process