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
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 total
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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Similar questions
- Compare and contrast a manual accounting system for processing customer transactions. Include an explanation of how the accounts receivable subsidiary ledger compares with the Customer Center.arrow_forwardSales ledger control Account is known to have a debit balance. Explain, using numerical example why at certain instances the account has both debit and credit balance brought down? Construct a Purchase Ledger Control Account, using your own numerical example, with five items? Briefly discuss the role of the control accounts in the identification of missing figures in the financial statements of organizations ?arrow_forwardConsider the following information items as you respond to the question:i. Customer master fileii. Journal entry to record the receipt of cashiii. Pre-numbered documentsiv. Schedule of accounts receivableAccounting information systems have five generic elements. Which of the following statements is most true? A. "Pre-numbered documents" can be an example of three of the five elements. B. "Schedule of accounts receivable" can be an example of all five elements. C. Both "Pre-numbered documents" can be an example of three of the five elements and "Schedule of accounts receivable" can be an example of all five elements are true. D. Neither "Pre-numbered documents" can be an example of three of the five elements nor "Schedule of accounts receivable" can be an example of all five elements is true.arrow_forward
- 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 reportarrow_forwardDescribe the data flow in the buying process that begins when the purchasing organization sends a check to a vendor to settle an invoice for goods bought.arrow_forwardSubject: Accounting Information SystemQuestion: What would be the correct system flowchart for this given process: Accounts Payable and Cash Disbursement 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.arrow_forward
- What are the step(s) when using the Sales with Payment customer workflow? A. Create sales receipts deposited to the Undeposited Funds account > Create Bank Deposit B. Create Sales Receipt deposited to the checking account C. Create Bank Deposit D. Create Invoice > Receive Payment deposited to the Undeposited Funds account > Create Bank Depositarrow_forwardChoose 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_forwardWhich of the following controls most likely would assure that all billed sales are correctly posted to the accounts receivable ledger? a. Each shipment on credit is supported by a prenumbered sales invoice. O b. Daily sales summaries are compared to daily postings to the accounts receivable ledger. O C. The accounts receivable ledger is reconciled daily to the control account in the general ledger. O d. Each sales invoice is supported by a prenumbered shipping document.arrow_forward
- 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_forwardChoose only one answer as well as state their reasons/rationale for the answer chosen. 10) An organization uses batch processing to generate customer invoices. During the process, the computer sums the invoice number field for all invoices in the batch and the billing clerk then compares that number to the same total that the clerk calculated prior to processing. That calculation (the sum of the sales invoice numbers) is a type of batch total called a:a. Record countb. Financial totalc. Hash totalarrow_forwardAll records in a file must be uniquely identifiable in at least one attribute, which is its primary key. Drawing on your general knowledge of accounting, identify the primary key for the following types of accounting records. To illustrate, the first record is done for you.Record Type Primary KeyAccounts Receivable Customer Number Accounts Payable Inventory Customer Sales Orders Purchase Orders to vendors Cash Receipts (checks) from customers Cash Disbursements (checks) to vendors Employee Payroll Earnings recordsarrow_forward
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