Homework Soursed Orderinventory 15 Statement evaluation Indicate whether ea
Solution
A)A junction table would be required in a relational database for the sales/collection process:
There is a need of the junction table in a relational database for the sales/collection process.it is only required if the company is selling multiple product and services.
A junction table is used to combine the primary key of the two table.A number of the foreign keys are contained in junction table having a many to one relationship from the junction table to the individual data table.
Answer:This statement is sometimes true.
B)Cash receipts clerks should reconcile a company bank statement at least monthly:
the bank statement of the company should be reconciled by an independent accountant or anyone except cash receipts clerk at least monthly.it is helpful to avoid the mishandling of cash reciepts.
Answer: this statement is Never True.
C)Companies complete all activities in the value chain tgo serve their stakeholders:
All the activities in the value chain are completed by many companies in order to serve their stakeholders but some companies are specialised in the subset of the value chain activities .it can be understood by the example of federal express who focus on inbound as well as outbound logistics.
Answer: this statement is sometimes True.
D)Customer should borrow money to take advantage to cash discounts in paying their bills:
the customer can take advantage of cash discount in instant paying by borrowing the money is certainly a good idea if the interest on the loan amount is considerable .sometime the interest on borrowed money is greater than the received cash discount.
Answer:This statement is Sometimes True.
E)Documents in the sales/collection process can be paper or electronic:
Document in the sales/collection can be either paper or electronic .the document should be kept by either in the paper and using a lock box to prevent it from losing or it can be in the electronic form and would be secured by some password and antivirus.
Answer: this statement is always true:
F)in the sales /collection process,seperation of duties can be applied to credit decisions:
the seperation of duties can be applied to credit decisions in the sales/collection process.it is considered as the basic internal control.it states that the control would be efficient and effective if the custody ,record keeping and authorization are seperated to a different person.
Answer:this statement is always True
G)Restrictive check endoesements eliminate the need for other internal controls over cash:
The other cash restriction is not needed after the restrictive check endoresement .A restrcitive endorsement is a control technique which is used to restrict the actions regarding finacial instruments.the restriction imposed on financial instruments results that the financial instrument is no-longer negotiable.
H)Seperation of duties helps safeguard inventory in the sales/collection process:
The seperation of duties is helpful regarding the safeguarding of the inventory in the sales/collection process.This statement is always true if the ionternal control system is well designed.
Answer:This statement is sometimes true.
I)Transaction in th sales/collection process require a bill of lading:
A bill of lading is required for the trasanctions ion the sales/collection processes.it is required when merchandise is shipped. Bill of lading specifies the freight term,as it is the contract between the common carrier and seller .it is used at timeof shipment of goods to the customer.The bill of lading tells the coon carrier where to deliver the goods.
Answer: This statement is sometimes True.
J)websites assist companies in the sales/collection process:
the company is assisted by the websites in the sale/collection process.websites are helful to get customers orders,but it is not used by all the firms in the market.
Face-face internet,mail,and phone are the methods of order taking.Taking a cutomer order is considered as the first step involved in a effective sales/collection process. An order can be taken in a variety of ways including above mentioned.
Answer:this statement is sometimes True.
