EDI stands for:

Select one:

a. electronic data interchange.

b. electronic departmental integration.

c. extensible digital information.

d. ecommerce data interchange.

2. KW Ltd separates the billing and shipping functions and imposes independent checks to ensure that goods have been shipped prior to billing the customer. This is an example of:

Select one:

a. reducing the risk of over-billing.

b. reducing the risk of failing to bill a customer for a valid sale.

c. eliminating the risk of failing to ship goods that have been invoiced.

d. reducing the risk of under-billing.

3. Which of the following is NOT a strategy-level decision?

Select one:

a. Price setting.

b. Provision of customer credit facilities.

c. Selecting goods delivery method.

d. Sales return and warranty policies.

4. To bill a customer, the billing department must:

Select one:

a. check that the sale has been completed.

b. check inventory levels.

c. check that the customer has received the goods.

d. perform a credit check.

5. Online banking:

Select one:

a. improves security but has no impact on cash flows.

b. improves security and cash flows.

c. improves transparency as well as eliminating the need for reconciliation of transactions.

d. increases data entry costs but reduces error rates.

6. To reduce the risk of allowing an order to proceed when goods are not available or rejecting an order when goods are available, it is important to:

Select one:

a. maintain accurate and timely periodic inventory records and constantly conduct physical inventory checks.

b. maintain accurate and timely perpetual inventory records and constantly conduct physical inventory checks.

c. maintain accurate and timely perpetual inventory records and periodically conduct physical inventory checks.

d. maintain accurate and timely periodic inventory records and periodically conduct physical inventory checks.

7. The objective of the accounts receivable phase in the revenue cycle is to:

Select one:

a. ensure payments for goods and services are received on time and in correct amount.

b. ensure the accounts payable record is updated accordingly when payments for goods and services are received.

c. ensure payments for goods and services are correctly received, recorded and banked.

d. ensure that payments for goods and services are made to the correct suppliers.

8. Which of the following can be identified as a risk in receiving payment?

Select one:

a. All of the options are correct.

b. Non-payment.

c. Theft of cash and/or cheques.

d. Late or slow payment.