Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
10 Cards in this Set
- Front
- Back
|
1. Sensitive data should be encrypted in storage to prevent IT employees without access to the ERP system from using operating system utilities to access it. a. True b. False |
a. True (Correct.)
|
|
|
2. An ERP can be used as a mitigation tool for threats to the revenue cycle concerning the loss or destruction of master data. a. True b. False |
a. True (Correct. A best practice is to implement the ERP system as three separate instances–production, used to process daily activity; a second for testing and development; and a third instance should be maintained as an online backup to the production system to provide near real-time recovery.)
|
|
|
3. A document authorizing the purchase or production of items that is created when there is insufficient inventory to meet customer orders is referred to as a. a back order. b. a picking ticket. |
a. a back order. (Correct. A document authorizing the purchase or production of items that is created when there is insufficient inventory to meet customer orders.)
|
|
|
4. Customers typically pay according to each invoice with the a. open-invoice method. b. balance-forward method. c. monthly statement. |
a. open-invoice method. (Correct. Method for maintaining accounts receivable in which customers typically pay according to each invoice).
|
|
|
5. Which of the following revenue cycle activities can potentially be eliminated by technology? a. sales order entry b. shipping c. billing d. cash Collections |
c. billing (Correct. The use of integrated ERP systems makes printing invoices superfluous, because both the seller and customer already know all the information included in the invoice. Some large manufacturers have already moved to invoiceless systems with their major suppliers.)
|
|
|
6. The integrated database underlying an ERP system results in which of the following general threats to the revenue cycle? a. inaccurate or invalid master data b. unauthorized disclosure of sensitive information c. loss or destruction of data d. all of the above |
d. all of the above (Correct.)
|
|
|
7. Which document is used to authorize the release of merchandise from inventory control (warehouse) to shipping? a. picking ticket b. packing slip c. shipping order d. sales invoice |
a. picking ticket (Correct. A picking ticket is generated by sales order entry to authorize removal of inventory to be shipped to the customer.)
|
|
|
8. Which of the following provides a means both to improve the efficiency of processing customer payments and also to enhance control over those payments? a. CRM b. lockboxes c. aging accounts receivable d. EDI |
b. lockboxes (Correct. The use of lockboxes eliminates the delays involved in processing customer payments and then depositing them. It also improves control because customer payments are not directly handled by any employees.)
|
|
|
9. For good internal control, who should approve credit memos? a. credit manager b. sales manager c. billing manager d. controller |
a. credit manager (Correct. This is the credit manager’s function.)
|
|
|
10. For good internal control over customer remittances, the mailroom clerk should separate the checks from the remittance advices and send the customer payments to which department?a. billingb. accounts receivablec. cashierd. sales
|
c. cashier (Correct. This is the cashier’s job. The cashier function has custody of cash accounts.)
|
