Accounting Information Systems
9th Edition
ISBN: 9781133934400
Author: James A. Hall
Publisher: Cengage Learning
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Chapter 2, Problem 11P
To determine
Prepare the system flowchart of the manual sales procedure.
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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.
The following describes the revenue cycle procedures for a hypothetical company.The sales department clerk receives hard-copy customer orders and manually prepares a six-part hardcopy sales order. Copies of the sales order are distributed to various departments as follows: Copies 1, 2, and 3 go to the shipping department, and Copies 4, 5, and 6 are sent to the billing department where they are temporarily filed by the billing clerk.Upon receipt of the sales order copies, the shipping clerk picks the goods from the warehouse shelves and ships them to the customer. The clerk sends Copy 1 of the sales order along with the goods to the customer. Copy 2 is sent to the billing department, and Copy 3 is filed in the shipping department. When the billing clerk receives Copy 2 from the warehouse, she pulls the other copies from the temporary file and completes the documents by adding prices, taxes, and freight charges. Then, using the department PC, the billing clerk records the sale in the…
The sales department clerk receives customer orders from the customers and prepares a three-part sales order. The Three copies are sent to the credit department for approval, where the clerk reviews the Customer Credit Records. After Approval, the credit department clerk returns one copy of the sales order to the sales department, where it is reviewed and filed. The remaining two copies are sent to the warehouse. The warehouse clerk picks the goods from the shelves and sends them along with one copy of the sales order to the shipping department. The third copy of the sales order is filed in the warehouse. Upon receipt of the goods, the shipping clerk prepares a shipping notice and sends the goods and one copy of the sales order to the customer. The clerk then sends the shipping notice to the billing department. Upon receipt of the shipping notice, the billing clerk updates the customer's account receivable and files the shipping notice in the department.
Chapter 2 Solutions
Accounting Information Systems
Ch. 2 - Prob. 1RQCh. 2 - Prob. 2RQCh. 2 - Prob. 3RQCh. 2 - Prob. 4RQCh. 2 - Name the major subsystems of the revenue cycle.Ch. 2 - Prob. 6RQCh. 2 - Name the two types of journals.Ch. 2 - Distinguish between a general journal and journal...Ch. 2 - Name the two types of ledgers.Ch. 2 - Prob. 10RQ
Ch. 2 - Prob. 11RQCh. 2 - Prob. 12RQCh. 2 - Prob. 13RQCh. 2 - Prob. 14RQCh. 2 - Prob. 15RQCh. 2 - Prob. 16RQCh. 2 - Prob. 17RQCh. 2 - Prob. 18RQCh. 2 - Prob. 19RQCh. 2 - Distinguish between batch and real-time...Ch. 2 - Prob. 21RQCh. 2 - Prob. 22RQCh. 2 - Prob. 23RQCh. 2 - Prob. 24RQCh. 2 - Prob. 25RQCh. 2 - Prob. 26RQCh. 2 - Prob. 27RQCh. 2 - Prob. 28RQCh. 2 - Prob. 29RQCh. 2 - Prob. 30RQCh. 2 - Prob. 31RQCh. 2 - Prob. 32RQCh. 2 - Prob. 33RQCh. 2 - Prob. 34RQCh. 2 - Prob. 35RQCh. 2 - Prob. 36RQCh. 2 - Prob. 37RQCh. 2 - Prob. 38RQCh. 2 - Discuss the flow of cash through the transaction...Ch. 2 - Explain whether the cost accounting system...Ch. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Would the writing down of obsolete inventory be...Ch. 2 - Are both registers and special journals necessary?Ch. 2 - Discuss the relationship between the balance in...Ch. 2 - Prob. 8DQCh. 2 - Prob. 9DQCh. 2 - Are large batch sizes preferable to small batch...Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 16DQCh. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 19DQCh. 2 - Prob. 1MCQCh. 2 - Prob. 2MCQCh. 2 - Prob. 3MCQCh. 2 - Prob. 4MCQCh. 2 - Prob. 5MCQCh. 2 - Prob. 6MCQCh. 2 - Prob. 7MCQCh. 2 - Prob. 8MCQCh. 2 - Prob. 9MCQCh. 2 - Prob. 10MCQCh. 2 - Which of the following is NOT a true statement? a....Ch. 2 - Which of the following is true of the relationship...Ch. 2 - Prob. 13MCQCh. 2 - Prob. 14MCQCh. 2 - Prob. 15MCQCh. 2 - Prob. 16MCQCh. 2 - Prob. 17MCQCh. 2 - Prob. 18MCQCh. 2 - Prob. 19MCQCh. 2 - Prob. 20MCQCh. 2 - Prob. 21MCQCh. 2 - Prob. 22MCQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Prob. 5PCh. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - The following describes the payroll procedures for...Ch. 2 - Prob. 15PCh. 2 - Prob. 16PCh. 2 - Prob. 17PCh. 2 - Prob. 18PCh. 2 - Prob. 19PCh. 2 - Prob. 20PCh. 2 - CODING SCHEME Devise a coding scheme using block...Ch. 2 - Prob. 22PCh. 2 - Prob. 23PCh. 2 - Prob. 24PCh. 2 - Prob. 25P
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- SYSTEM DOCUMENTATION- REVENUE CYCLE (MANUALAND COMPUTER PROCESSES)The following describes the revenue cycle procedures for a hypotheticalcompany. The sales department clerk receives hard-copy customer orders andmanually prepares a six-part hard-copy sales order. Copies of the salesorder are distributed to various departments as follows: Copies 1, 2, and3 go to the shipping department, and Copies 4, 5, and 6 are sent to thebilling department where they are temporarily filed by the billing clerk. Upon receipt of the sales order copies, the shipping clerk picks the goodsfrom the warehouse shelves and ships them to the customer. Theclerk sends Copy 1 of the sales order along with the goods to thecustomer. Copy 2 is sent to the billing department, and Copy 3 is filed inthe shipping department. When the billing clerk receives Copy 2 from the warehouse, she pulls theother copies from the temporary file and completes the documents byadding prices, taxes, and freight charges. Then, using the…arrow_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_forwardWhen Legacy Co. receives telephone and fax orders, the billing department prepares an invoice. The invoice is mailed immediately. A copy of the invoice serves as a shipping notice. The shipping department removes inventory from the warehouse and prepares the shipment. When the order is complete, the goods are shipped. The clerk checks the customer’s credit before recording the sale in the general journal and the account receivable subsidiary ledger. The receptionist opens the mail and lists all payments. The receptionist also handles all customer complaints and prepares sales return forms for defective merchandise. The cashier records all cash receipts in the general journal and makes the appropriate entry in the accounts receivable subsidiary ledger. The cashier prepares the daily bank deposit. Describe at least four internal control weaknesses at Legacy Co.arrow_forward
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