Accountng Information System Chapter 12 ed 12.docx

SUGGESTED ANSWERS TO THE PROBLEMS 12.1 Match the term in the left column with its definition in the right column. 1. __d__ CRM systema. Document used to authorize reducing the balance in a customer account2. __g_ Open-invoice methodb. Process of dividing customer account master file into subsets and preparing invoices for one subset at a time3. __a__ Credit memoc. System that integrates EFT and EDI information4. __h__ Credit limitd. System that contains customer-related data organized in a manner to facilitate customer service, sales, and retention5. __b__ Cycle billinge. Electronic transfer of funds6. __c___ FEDIf. Method of maintaining accounts receivable that generates one payments for all sales made the previous month7. _n__ Remittance adviceg. Method of maintaining customer accounts that generates payments for each individual sales transaction8. _j__ Lockboxh. Maximum possible account balance for a customer9. _k__ Back orderi. Electronic invoicing10. _m__ Picking ticketj. Post office box to which customers send payments11. _l__ Bill of ladingk. Document used to indicate stock outs existl. Document used to establish responsibility for shipping goods via a third partym. Document that authorizes removal of merchandise from inventoryn. Turnaround document returned by customers with payments 12.2 What internal control procedure(s) would provide protection against the following threats? Theft of goods by the shipping dock workers, who claim that the inventory shortages reflect errors in the inventory records. Inventory clerks should count and document goods (on paper or by computer) as they leave inventory storage. Shipping personnel should be required to count and document receipt of goods from the finished goods storeroom to acknowledge responsibility for custody of the goods transferred. Counting goods when they are received and when they are sent to inventory storage as well as when goods leave inventory s