Quiz 10 - AIS

• Question 1

  
  

  	Which of the following steps in the sales / collection process occurs last?
  	Correct Answer:   Bill the customer

• Question 2

  
  

  	Consider the following information items as you respond to the next question:     i.    Customer master file    ii.    Journal entry to record the receipt of cash   iii.    Pre-numbered documents   iv.    Schedule of accounts receivable         Accounting information systems have five generic elements, one of which can be directly applied to the other four. Which information item above best exemplifies that element?
  	Correct Answer:   Pre-numbered documents as an internal control in the AIS

• Question 3

  
  

  	Sally, a sales representative for WER Corporation, ensures that she does a thorough credit check for customers who want to purchase goods on account. The most important internal control WER should implement is:
  	Correct Answer:   Seperation of duties

• Question 4

  
  

  	As a form of internal control, a bank reconciliation is most closely related to which step in the sales / collection process?  (page 210)
  	Correct Answer:   Sixth

• Question 5

  
  

  	Consider the following short case as you respond to the next question: VLC Corporation sold merchandise with a cost of $200 on account for $300 to PRT Corporation; credit terms were 2 / 10, n / 30. VLC paid the outgoing freight charge of $10. PRT paid the invoice within the discount period. Inclusive of all the transactions that affect the income statement, VLC’s gross profit on the sale was:
  	Correct Answer:   $94