Revenue Cycle Flashcards Preview

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Flashcards in Revenue Cycle Deck (10)
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0
Q

In the revenue cycle, before a shipping notice is prepared, the shipping department personnel should match the inventory received from the warehouse to details from

A

Picking ticket and sales order

1
Q

In organizations with at least basic segregation of duties, the credit manager reports to the —–and the treasurer reports to the —–

A

Treasurer, Vice President of finance

2
Q

Which of the following documents would normally trigger the billing process in the revenue cycle

A

Packing slip received from the shipping department

3
Q

Which of the following documents would normally trigger the process to record a customer payment

A

Remittance advice

4
Q

Which document should always be included with a merchandise shipment to a customer

A

Packing slip

5
Q

Accounting recognizes a sale when

A

Inventory becomes the legal property of the customer

6
Q

What is the primary objective of the revenue cycle

A

To provide the right product in the right place at the right time at the right price

7
Q

Which of the following is not a basic activity of the revenue cycle

A

Receiving

8
Q

How is credit approval generally handled for established customers with a documented payment history

A

General authorization by a sales clerk

9
Q

Two documents usually accompany goods shipped to a customer. What are the two documents?

A

A packing slip and a bill of lading