Question

Sodoo Which of the following departments is not part of the revenue cycle? Billing department Sales department Shipping department Accounts payable department The payroll function adds to organisational success by: (i) ensuring that employees are paid in a timely and accurate manner (ii) ensuring high morale and confidence in staff (iii) complying with all legislative requirements (iv) controlling salary and wage costs. (i) only (i) (iv) only (i)(iii) only (i)(ii) (iii) (iv) 3. The general ledger and financial reporting cycle Summarises, adjusts, and reports on data from all previous operational cycles. Summarises, adjusts, and reports on data from all current operational cycles. Creates, adjusts, and summarises on data from all previous operational cycles. Creates, adjusts, and summarises on data from all current operational cycles. doo Evdoo Ecodoo The purpose of budgeting is to: Get a forecast of resource usage of the next financial year only. Facilitate organisational planning and control. Request more funding. All of the options are correct. 5. In terms of the general ledger and financial reporting cycle, which of the following sequences is in the correct order? create trial balance, perform bank reconciliation, prepare adjusting journal entries, conduct financial reporting prepare adjusting journal entries, create trial balance, perform bank reconciliation, conduct financial reporting perform bank reconciliation, create trial balance, prepare adjusting journal entries, conduct financial reporting create trial balance, prepare adjusting journal entries, perform bank reconciliation, conduct financial reporting só oo Which of the following statements regarding budgets is true? More aggregate budgets are more difficult to plan. More aggregate budgets have sound usefulness during monitoring of performance due to the abundance of information they provide. Budgets can be set at two levels. Budgets can be set for each different type of revenue and expense for each division as contained in the chart of accounts. 7. An inability to retain existing staff members: Allows for generational change to take place Provides opportunities for existing staff members Leads to expensive and disruptive staff replacements All of the options are correct doo 2doo Which of the following documents is/are given to customers? (i) shipping notice (ii) sales invoice (iii) remittance advice (iv) goods packing slip. (i)(ii)(iii) only (ii) (iii) (iv) only (ii) (iii) only (i) (i)(iii) (iv) Sodoo Which of the following technologies is not directly relevant to the revenue cycle? CRM ERP SCM EDI 10. EDI stands for: oooo Electronic data interchange Electronic departmental integration Extensible digital information Ecommerce data interchange

Answer 1

1) ( D) Accounts Payable Department:

Explanation:

1) Revenue Cycle includes all the department from sales to receipt of the income.

2) For, revenue generation sales is utmost important.Business will earn a revenue only if sales the goods and services. Therforeg, option (b) sales department is a part of revenue cycle.

3) After sales is made, if customer is not in same locality , seller has to ship the goods.thus ( c) shipping department is also a part of revenue cycle.

4) Once the item is sold, seller has to bill the clients and create an invoice,so that he can record it in the accounting journal.This way (a) is also part of revenue cycle.

5) Revenue cycle includes receivable and not payable therfore (d) is not the part of revenue cycle.