Accounting Information Systems
11th Edition
ISBN: 9781337552127
Author: Ulric J. Gelinas, Richard B. Dull, Patrick Wheeler, Mary Callahan Hill
Publisher: Cengage Learning
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Question
Chapter 10, Problem 4SP
a)
Summary Introduction
To explain: The accomplishment of the credit checking process.
Introduction:
OE/S process:
It is known as the order entry/sales process. It describes the first four steps of the order-to-cash process.
b)
Summary Introduction
To explain: A weakness and a control to compensate for that weakness.
Introduction:
OE/S process:
It is known as the order entry/sales process. It describes the first four steps of the order-to-cash process.
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Students have asked these similar questions
To minimize errors in the accounts payable function, which of the following procedures should be performed?
approving the purchase requisition
following up on open purchase orders
double checking the math on the bank reconciliation
matching the supplier’s invoice to the receiving report
Which statement about Revenue Cycle is correct?
The customer and accounts payable department gets copies of the invoice.The sales order department prepares the invoice.The billing department uses the sales order and shipping documents to create the invoice.The accounts receivable department uses the sales order to update the accounts receivable subsidiary ledger
Hi! What is the data flow diagram of this process?
Vendors send invoices to the AP department where they are reviewed and approved for payment. Once approved, the invoice and a cash disbursement voucher are sent to the cash disbursement department, where a check is prepared and sent to the vendor. A copy of the check, the invoice, and the voucher are returned to the AP department and filed.
Chapter 10 Solutions
Accounting Information Systems
Ch. 10 - Prob. 1RQCh. 10 - What are the major functions performed by the OE/S...Ch. 10 - With what internal and external entities does the...Ch. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - Distinguish buy-side and sell-side systems.Ch. 10 - Prob. 8RQCh. 10 - Prob. 9RQCh. 10 - Prob. 10RQ
Ch. 10 - Prob. 11RQCh. 10 - Prob. 12RQCh. 10 - Prob. 13RQCh. 10 - Prob. 14RQCh. 10 - Describe the impact that entity-level controls...Ch. 10 - Prob. 1DQCh. 10 - Prob. 2DQCh. 10 - Prob. 3DQCh. 10 - Prob. 4DQCh. 10 - Prob. 5DQCh. 10 - Prob. 6DQCh. 10 - An enterprise system supports a business process...Ch. 10 - Among the three functional entities (marketing,...Ch. 10 - The chapter presented a brief example of how the...Ch. 10 - Prob. 3SPCh. 10 - Prob. 4SPCh. 10 - Prob. 5SPCh. 10 - Prob. 6SPCh. 10 - Prob. 3PCh. 10 - Prob. 6P
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- What is the accounts receivable ledger? a. A record of credit customers and their balances b. A record of vendors and their balances c. Part of the sales journal d. Part of the general journal e. Part of the general ledgerarrow_forwardYou just posted a credit to Stars Inc. in the accounts receivable subsidiary ledger. Which special journal did it come from? A. sales journal B. cash receipts journal C. purchases journal D. cash disbursements journal E. general journalarrow_forwardAs orders are received from customers, a personnel in the sales department prepares a sales order and sends a copy to the credit department for checking the viability of the customer's credit. A copy of the sales order is then sent to the shipping department for the preparation of the goods for delivery, the delivery receipt and the sales invoice which is then sent to the customer. A copy of the sales order, delivery receipt and the sales invoice is then sent to the accounting department for recording. What area in the transaction cycle is deemed a control weakness instead of a strength?a. The approval of the customer credit.b. The preparation of the delivery receipt.c. The preparation of the sales invoice.d. None can be deemed as a weakness.arrow_forward
- Choose the one correct answer. As orders are received from customers, a personnel in the sales department prepares a sales order and sends a copy to the credit department for checking the viability of the customer's credit. A copy of the sales order is then sent to the shipping department for the preparation of the goods for delivery, the delivery receipt and the sales invoice which is then sent to the customer. A copy of the sales order, delivery receipt and the sales invoice is then sent to the accounting department for recording. What area in the transaction cycle is deemed a control weakness instead of a strength?a. The approval of the customer credit.b. The preparation of the delivery receipt.c. The preparation of the sales invoice.d. None can be deemed as a weakness.arrow_forwardNormally revenue is recognized when: A. the customer order is receivedB. the customer order is accompanied by a checkC. the transaction results to recording an accounts receivableD. when the title of the goods changesarrow_forwardWhen a sample of customer accounts receivable is selected for vouching debits, auditors will vouch them toa. Sales invoices with shipping documents and customer sales invoices.b. Records of accounts receivable write-offs.c. Cash remittance lists and bank deposit slips.d. Credit files and reports.arrow_forward
- Before processing a batch of invoices, the accounts payable clerk sums the quantities billed. The sum obtained is best described as a(n): A. financial total B. grand total C. record count D. hash total E. cross-footing totalarrow_forwardThe following procedures are used by Complete Wholesale Incorporated.a. All sales are made on account, with each sale being indicated on a sequentially numberedsales invoice.b. Customer payments are received in the mail by the office receptionist, who sends the checksto a cashier for deposit and the remittance advices to the accounting department for recordingagainst the customer’s account balance.c. The office receptionist is assigned the job of handling all customer complaints.d. When a customer has a legitimate complaint about goods sold to the customer on account, thereceptionist will phone the accounting department to request that the customer’s account becredited for the sales allowance.e. The company’s inventory is stored in a locked warehouse that is monitored by surveillancecameras.f. Payments to the company’s suppliers are made only after the supplier’s invoice is received andcompared to the receiving report.Required:1. Indicate whether each procedure represents a strength or…arrow_forwardYou are working as an Accounts Receivable Officer in Super Mart Store. Your Store manager asked you to make a data flow context diagram of the following transaction: A customer made a payment on account of purchases made last month. The customer payment was processed by receipt department and deposited in the bank. The remittance advice is forwarded to Account receivable department of updating of record. The credit manager is informed about the receivable information from the customerarrow_forward
- All of the following are examples of sales order entry system controls except? Digital signatures/written signatures Credit Limits Approving invoices before paying Trainingarrow_forwardThe credit memoranda creates a(n) __ in the accounts receivable file of a customer. A. note decline (B) Transfer (C) D. Intensify.arrow_forwardTo test whether debits to accounts receivable represent valid transactions, the auditor should trace entries from the A. Accounts receivable ledger to sales documentation. B. Sales journal to the accounts receivable ledger. C. Accounts receivable ledger to the cash receipts journal. D. Cash receipts documentation to the accounts receivable ledger.arrow_forward
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