Final Exam Chapter 8 Flashcards Preview

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Flashcards in Final Exam Chapter 8 Deck (24)
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1

is a recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting their cash payments

revenue cycle

2

what should be don if there is inaccurate or invalid master data

employ data processint integrity controls
restrict acces to master data
review all changes to master data

3

what should be done if there is unauthorized disclosure of sensitive data

physical and logical access controls
encrypt data

4

what should be done if there is loss or destruction of data

back up data
implement disaster recovery plan

5

what should be done if there is poor performance issues

use managerial reports to evaluate company and individual performance

6

take order approve credit check inventory availability respond to customer inquires

sales order entry

7

pick and pack goods and ship them

shipping

8

invoice customer and update accounts receivable

billing

9

receive payments deposit funds and update accounts receivable

cash collection

10

what are the 4 parts of the revenue cycle

sales order entry, shipping, billing, cash collection

11

what do you do if there is an incomplete or inaccurate customer orders

completeness checks
field checks
close loop verification
validity checks
reasonableness checks

12

what do you do if there is invalid orders

require signed purchase orders from customers for paper based orders or use digital signatures

13

what do you do if there is uncollectible accounts

approve sales on credit for each customer
set credit limits
require specific authorization for approve sales over the customers limit
monitor customers balances with regular accounts receivable aging reports

14

what do you do if there is stockouts or excess inventory

maintain accurate inventory records
use the perpetual inventory method
use barcodes or RFID tags
train employees about inventory control procedures
conduct periodic physical counts of inventory
develop accurate sales forecasting models

15

what do you do if you are loosing customers

use CRM systems
establish a chat feature, FAQ page, and access to secure customer account information of the company's website
evaluate customer service ratings

16

what do you do if you are picking the wrong items or the wrong quantity

use bar codes and RFID tags
reconcile picking tickets to sales order details

17

what can you do if you are having problems with theft of inventory

restrict physical access
document all inventory transfers
use bar code and RFID technology
conduct periodic physical counts of inventory and reconcile to recorded quantities

18

What do you do if you are having shipping errors

reconcile sales orders picking tickets packing slips and bills of lading
use RFID systems to identify delays
enter data using bar code scanners and RFID
empty data entry edit controls (field checks, validity check, completeness check etc.)
configure computerized and paper based systems to prevent duplicate shipments

19

what do you do if you are having problems sending bills to customers

separate billing and shipping departments
compare sales orders, picking tickets, and shipping documents with sales invoices to identify any shipments that have not been invoiced

20

what do you do if you are having problems with billing errors

configure system to enter pricing data automatically
restrict access to pricing master data
employ data entry edit controls
reconcile shipping documents to sales orders

21

what do you do if you are having errors in posting to accounts receivable

use data entry controls
reconcile batch totals
mail monthly statements to customers
reconcile subsidiary accounts to the general ledger

22

what do you do if you are having inaccurate or invalid credit memos

segregate credit memo authorization function from both the sales order entry and customer account maintenance functions
configure the system to block credit memos unless there is either corresponding documentation of return of goods or specific authorization by management

23

what do you do if you are having a theft of cash

separate the cash handling function from the accounts receivable and credit function
regularly reconcile the bank account with recorded amounts using someone independent of the cash collections procedures
mail room controls - cameras, multiple people in the room
use cash registers
deposit cash daily

24

what do you do if you are having cash flow problems

use lockbox arrangements, EFT, or credit credit cards
allow discounts for prompt payment by customers
prepare cash flow budgets