What information does the shipping department provide for billing?
informtaion on items and quantities shipped
100
The third revenue cycle is billing customers. What two tasks does this activity involve?
invoicing and updating accounts receivable
100
What is the final activity in the revenue cycle?
collecting cash from customers
100
Cycle billing is commonly used with which method of maintaining accounts receivable?
The balance forward method
200
Which department is responsible for picking and packing the order?
warehouse department
200
What does a sales invoice notify a customer?
The amount to be paid and where to send the payment?
200
What are the two basic ways to maintain accounts receivable?
The open-invoice and Balance-forward method
200
Which approach to cash collection tends to prevent theft by company employees?
Lockbox arrangements
200
What is an advantage of cycle billing?
Produces more even cash flow, produces more even workload, and doesn’t tie up computer for several days to print statements.
300
Picking tickets identifies what?
Which product to pick and what quantity
300
How can an integrated AIS may also merge the billing process with sales and marketing?
By using data about a customer’s past purchases to send information about related products and services with his monthly statement.
300
When using the open-invoice method, customers pay according to what?
Each invoice
300
What percentage of gross sales price does it cost to accept credit cards from customers?
2-4%
300
What can improve the efficiency and effectiveness of managing customer accounts?
Image processing
400
Who records the quantities picked on the picking ticket?
warehouse workers
400
How may invoices may be sent/received?
In paper form or by EDI.
400
With the balance-forward method, do customers pay according to invoice?
No. They pay according to the amount on their monthly statement.
400
Which method sends immediate electronic notificiation to the company from the bank?
Electronic Lockbox
400
Who handles adjustments?
These adjustments are handled by the credit manager.
500
Which department packs and shipsthe order?
Shipping department.
500
Is an EDI more common for smaller or larger companies?
Larger companies.
500
What is an advantage of the balance-forward method?
It’s more efficient and reduces costs because you don’t bill for each individual sale.
It’s more convenient for the customer to make one monthly remittance.
500
Which approach integrates EFT with EDI?
Financial electronic data interchange.
500
What food is most commonly served on Thanksgiving?