BMGT 326 - EXAM 3 - CH11

BMGT 326 - EXAM 3 - CH11 - Chapter 11The Billing/Accounts...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11—The Billing/Accounts Receivable/ Cash Receipts (B/AR/CR) Process TRUE/FALSE 1. The B/AR/CR process completes the order to cash process by accomplishing the activities of billing customers, managing customer accounts, and securing payment for goods and services. ANS: T 2. Recording B/AR/CR event data is generally the responsibility of the treasury department, which typically reports to the controller function. ANS: F 3. In the organization structure shown in the text, although both report to the VP of Finance, the treasurer and controller functions should be segregated. ANS: T 4. The sales department should be responsible for credit approval so sales personnel can immediately increase sales volume. ANS: F 5. The objective of cash management is to free up funds so that they can either be invested to earn interest, or used to reduced debt, thus reducing interest charges. ANS: T 6. Float, when applied to cash receipts, is the time between customer payment and the availability of funds on deposit and available. ANS: T 7. Funds on deposit and available are known as good funds. ANS: T 8. The AR master file address is a postal address, maintained by the firm’s bank, which is used solely for the purpose of collecting checks. ANS: F 9. Database systems are Internet based systems for sending bills/invoices to customers and receiving the customer payment electronically. ANS: F 10. An invoice is a business document used to notify the customer of an obligation to pay the seller for merchandise which was ordered and shipped. ANS: T
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
11. A purchasing statement is a business document designed to inform the payee of the invoices or other items being paid. ANS: F 12. The accounts receivable master file is a repository of all unpaid invoices issued by an organization and awaiting final disposition. ANS: T 13. The sales event data store contains invoice records. ANS: T 14. Accepted sales requests are later processed through a separate exception routine. ANS: F 15. The three types of accounts receivable systems discussed in the text are the lockbox, balance-forward, and open-item systems. ANS: F 16. In a balance-forward accounts receivable system, the customer statements display previous balance, payments, and balance forward to which is added any new charges to derive the total balance due. ANS: T 17. In an open-item accounts receivable system, invoices (new or settled in the current period) are listed, along with payment details. ANS: T 18. In a pre-billing system, invoices are prepared after the goods have been shipped and the sales order notification has been matched to the shipping's billing notification. ANS: F 19. In a post-billing system, invoices are prepared upon acceptance of the customer order. ANS: F
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/19/2010 for the course BMGT 326 taught by Professor Staff during the Spring '08 term at Maryland.

Page1 / 30

BMGT 326 - EXAM 3 - CH11 - Chapter 11The Billing/Accounts...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online