1a. Authorization Functions

Which of the following pairs of departments in the revenue cycle are primarily authorization functions?

Multiple Choice:

a. Credit Department and Shipping

b. Sales Department and the Credit Department

c. Sales Department and Accounts Receivable

1b. Use of a Lockbox

Veronica Products directs its customers to mail all payments to a P.O. box that is an address for a lockbox:

Which of the following risks is reduced by the use of a lockbox?

Multiple Choice:

a. Goods shipped will not be billed and collected in a timely manner

b. Employees of Veronica Products will steal cash receipts from customers

c. Credit memos will be issued to cover up thefts of cash receipts from customers