D217 Accounting Information Systems - Set 1 - Part 3

Correct Answer: Predefined terms agreed before utilization of the service

For effective electronic data interchange, both parties must agree on specific terms beforehand.

Correct Answer: Late deliveries

Late deliveries often result in sales returns because customers may no longer need the goods by the time they arrive.

Correct Answer: Unauthorized purchases causing excessive inventory

Without proper checks, a single clerk receiving inventory increases the risk of unauthorized or excessive orders.

Correct Answer: It helps prevent fraudulent activities in procurement

Supervisory control is essential for preventing fraud in procurement by ensuring that all purchases are authorized.

Correct Answer: Matching payments to customer invoices

In the revenue cycle, reconciliation involves matching customer payments to their respective invoices.

Correct Answer: Cash receipts journal

The cash receipts journal tracks payments made by customers toward open invoices.

Correct Answer: It summarizes transaction cycles that update master accounts

The general ledger system collects summarized data from various transaction cycles to update the master accounts.

Correct Answer: Segregation of duties between payroll and accounts payable

Segregating duties between payroll and accounts payable prevents fraud and errors in employee payment processing.

Correct Answer: Summarizing gross pay, deductions, and net pay

The payroll register summarizes gross pay, deductions, and net pay for each employee, facilitating payroll processing.

Correct Answer: Fixed asset system

The fixed asset system is responsible for tracking the acquisition, depreciation, and disposal of long-term assets like buildings and equipment.