ACCT 451 Week 4 Quiz – DeVry
1.(TCO 4) In the revenue cycle, a customer places an order for a certain product. Before the order is checked for inventory availability, what step should be taken?
2.(TCO 4) With a(n) __________ system, customers pay according to the amount showing on their monthly statement and payments are simply applied against the total account balance.
3.(TCO 4) Sad Clown Pajamas is an Internet-based wholesaler. Customers enter their orders online. The manager of Callow Youth Clothing was entering and order when the following error message popped up: Your total order exceeds your available credit. Please contact our Credit Department. This message is the result of a
4.(TCO 4) There is a threat of paying an invoice twice. What is an applicable control that may help mitigate this threat?
5.(TCO 4) The receiving clerk at Folding Squid Technologies examines incoming shipments and reconciles their contents with the relevant purchase orders. A receiving report is then sent to accounts payable and the vendor’s invoice is approved for payment. Which of the following would correct control weaknesses, if any, related to these activities?
6.(TCO 4) How does a company avoid overbilling customers for items not yet shipped?
7.(TCO 4) Name and describe the two common systems for approving vendor payments.