AIS-Chapter 12 Exam Questions and Answers 100% Solved
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Course
AIS
Institution
AIS
AIS-Chapter 12 Exam Questions and
Answers 100% Solved
1. According to generally accepted accounting principles, a sale is
recognized when
A.cash is received from the customer.
B.inventory is removed from the warehouse.
C.inventory becomes the legal property of the customer.
D.a sales order i...
1. According to generally accepted accounting principles, a sale is
recognized when
A.cash is received from the customer.
B.inventory is removed from the warehouse.
C.inventory becomes the legal property of the customer.
D.a sales order is approved by sales, inventory control, and credit
departments. -✔✔ C.inventory becomes the legal property of the customer.
1. Which is the best control to prevent invoicing customers for more than
the actual quantity shipped?
A.Use the information from the sales order to prepare the sales invoice.
B.Use the information from the packing slip to prepare the sales invoice.
C.Use the information from the bill of lading to prepare the sales invoice.
,D.Use the information from the picking ticket to prepare the sales invoice. -
✔✔ B.Use the information from the packing slip to prepare the sales
invoice.
1. A picking ticket is generated by the
A.shipping process.
B.sales order entry process.
C.packing process.
D.billing process. -✔✔ B.sales order entry process.
1. Matching customer account numbers and inventory item numbers to the
numbers in the customer and inventory master files is an example of a
A.completeness test.
B.field check.
C.reasonableness test.
D.validity check. -✔✔ D.validity check.
1. Which of the following is not a key decision that needs to be made in the
revenue cycle?
A.How should merchandise be delivered to customers?
, B.Should credit be extended to customers?
C.How can customer payments be processed to maximize cash flow?
D.Which vendor should inventory be purchased from? -✔✔ D.Which
vendor should inventory be purchased from?
The document a customer returns with their payment and that identifies the
source and the amount of the payment is called a
A.remittance advice.
B.remittance list.
C.credit memorandum.
D.debit memorandum -✔✔ A.remittance advice
To ensure proper segregation of duties, only the ________ has authority to
issue credit memos.
A.accounts receivable supervisor
B.controller
C.credit manager
D.cashier -✔✔ C.credit manager
The applicable control procedure for the threat of incomplete or inaccurate
customer orders is:
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