COMPLETION 1.

The B/AR/CR process completes the order to cash process by accomplishing the activities of billingcustomers, managing customer accounts, and ___________________. ANS:securing payment for goods or servicesorcollection 2. Recording billing/accounts receivable/cash receipts event data is generally the responsibility of theaccounts receivable department, which typically reports to the ____________________ function. ANS: controller 3. In the organization structure shown in the text, although both report to the VP of Finance, the____________________ and ____________________ functions should be segregated.. ANS:treasurer controller 4. There should be a segregation of duties between the sales department and the ___________department. ANS: credit 5. The objective of ____________________ is to free up funds so that they can either be invested to earninterest, or used to reduced debt, thus reducing interest charges. ANS: cash management 6. __________, when applied to cash receipts, is the time between customer payment and the availabilityof funds on deposit and available. ANS: Float 7. Funds on deposit and available are known as ________ funds. ANS: good Controlling Information Systems: Business Process Controls 259 8. A __________ is a postal address, maintained by the firms bank, which is used solely for the purposeof collecting checks. ANS: lockbox 9. With _______________, a financial institution issues an individual cash that is placed into anelectronic wallet. ANS: electronic cash 10. ___________ systems are Internet based systems for sending bills/invoices to customers and receivingthe customer payment electronically. ANS:EBPPor electronic bill presentment and payment 11. A(n) ____________________ is a business document used by a vendor to notify the customer of anobligation to pay the seller for merchandise which was ordered and shipped. ANS: invoice 12. A(n) ____________________ is a business document designed to inform the payee of the invoices orother items covered by the check amount. ANS: remittance advice 13. The ____________________ file is a repository of all unpaid invoices issued by an organization andawaiting final disposition. ANS: accounts receivable master 14. The logical data dictionary definition of the ____________________ event data file would compriseone or more invoice records. ANS: sales 15. Rejected sales requests are later processed through a separate _____________. ANS: exception routine 16. The two types of accounts receivable systems discussed in the text are the balance only and____________________ systems. ANS: open-item 17. In a(n) ____________________ accounts receivable system, the details of open invoices for priorperiods do not appear on the current-period customer statement. ANS: balance-only

Controlling Information Systems: Business Process Controls 260 18. In a(n) ____________________ accounts receivable system, the details of open invoices for both thecurrent and prior periods appear on the current-period customer statement. ANS: openitem 19. In a(n) ____________________ billing system, invoices are prepared after the goods have beenshipped and the sales order notification has been matched to the shipping's billing notification. ANS: postbilling 20. In a(n) ____________________ billing system, invoices are prepared upon acceptance of the customerorder, and there is no separate sales order document as such. ANS: prebilling 21. ____________________ processing systems are computerized systems for capture, storage, andretrieval of real or simulated objects, such as live scenes and photographs. ANS: Digital image (or image) 22. A(n) ____________________ or image processing camera is used to translate an object's image intoelectronic digital signals. ANS: optical scanner 23. The acronym MICR stands for ____________________. ANS: magnetic ink character recognition 24. The acronym ACH stands for ____________________. ANS: automated clearinghouse 25. The acronym EFT stands for ____________________. ANS: electronic funds transfer 26. A(n) ____________________ card system has the advantage of eliminating float. ANS: debit 27. The ____________________ supports the repetitive work routines of the credit department, thecashier, and the accounts receivable department. ANS: billing/accounts receivable/cash receipts (B/AR/CR) 28. In a(n) ____________________, accounts receivable records consist of a customer's current balancedue, past-due balance, and the finance charges and payments related to the account. ANS: balance-only system