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supplementary exam for practice...

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The revenue cycle commences when: @ Feedback: Introduction a. a payment is received b. a sale is recorded *c. a customer indicates they wish to purchase a good or service d. a customer is billed The correct answer is c 2. The objective of the sales phase in the revenue cycle is to: @ Feedback: Learning Objective 1 a. Effectively conduct sales and arrange the prompt supply of goods and services. b. Effectively conduct sales. *c. Effectively conduct, record, and monitor sales and arrange the prompt supply of goods and services. d. Effectively conduct, record, and monitor sales. The correct answer is c 3. The objective of the accounts receivable phase in the revenue cycle is to: @ Feedback: Learning Objective 1 a. Ensure payments for goods and services are received on time and in correct amount. *b. Ensure payments for goods and services are correctly received, recorded and banked. c. Ensure the accounts payable record is updated accordingly when payments for goods and services are received. d. None of the options are correct. The correct answer is b 4. Which of the following documents is not generated in the revenue cycle? @ Feedback: Learning Objective 1 a. Sales order b. Shipping notice c. Bill of lading *d. Purchase requisition The correct answer is d

5. Which of the following departments is not part of the revenue cycle? @ Feedback: Learning Objective 1

a. Billing department b. Sales department c. Shipping department *d. Accounts payable department The correct answer is d 6. Which document is prepared, usually in multiple copies, as part of the sales process and potentially used for various purposes, including initiating shipping? @ Feedback: Learning Objective 1 a. Customer order *b. Sales order c. Shipping notice d. Packing slip The correct answer is b 7. Which of the following statements is incorrect? @ Feedback: Learning Objective 1 a. The packing slip is generated by the shipping clerk. b. The sales invoice is prepared by the billing clerk. *c. The remittance advice is generated by the customer. d. The sales order is prepared by the salesperson. The correct answer is c 8. Which of the following statements is incorrect? @ Feedback: Learning Objective 1 a. The level of sales achieved drives all other activity levels within the organization. b. A sound, well-controlled revenue cycle can provide a competitive advantage. c. A sound, well-controlled revenue cycle can lead to opportunities to sustain higher product pricing. *d. The level of sales achieved determines whether competitive advantages can be sustained. The correct answer is d 9. A document that is prepared by the shipping officer in the logistics unit for the common carriers that transport the goods to the customer is: @ Feedback: Learning Objective 1 *a. Bill of lading b. Shipping notice c. Goods packing slip d. Sales invoice The correct answer is a

10. The sales order is a formal document that is prepared mainly using: @ Feedback: Learning Objective 1 a. sales invoice *b. customer order c. customer credit application d. customer service log The correct answer is b 11. Which of the following documents is/are given to customers? (i) shipping notice (ii) sales invoice (iii) remittance advice (iv) goods packing slip. @ Feedback: Learning Objective 1 a. (i) (ii) (iii) only b. (ii) (iii) (iv) only c. (ii) (iii) only *d. (i) (ii) (iii) (iv) The correct answer is d 12. Online banking: @ Feedback: Learning Objective 2 a. Improves security and cash flows b. Improves transparency and reconciliation of transactions c. Helps cut data entry costs and reduces error rates *d. All of the options are correct. The correct answer is d...