Tag: Ethical Guidance

The following process describes aspects of the sales system in operation at Alex plc:

For each process, select whether it represents a big strength, a big deficiency, a minor impact or no impact on the system.

• Orders are placed by telephone. On receipt of a call, following credit checks, the order is immediately entered onto the system

Select ONE answer:

1. a minor impact
2. a big strength
3. no impact
4. a big deficiency

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – that orders placed by telephone, once credit checked, are entered into the system is a strength as it ensures the prompt recording of an order. Also, the customer is checked for creditworthiness before the order being generated – indicating that the company is protecting itself from loss.
3. Not correct
4. Not correct

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Which ONE of the following is an objective of the sales “ordering” part of the sales system?

Select ONE answer:

1. Sales are ONLY made to credit worthy customers
2. Goods are correctly invoiced
3. Cut-off is correct
4. Orders CANNOT be fulfilled

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

1. Correct – Correct invoicing is an objective of the invoicing stage of the sales system. Cut-off affects the recording stage of the sales cycle.
2. Not correct
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

Which ONE of the following is an objective of the sales “ordering” part of the sales system?

Select ONE answer:

1. Sales are only made to non-creditworthy customers
2. Goods are correctly invoiced
3. Cut-off is correct
4. Orders can be fulfilled

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Correct invoicing is an objective of the invoicing stage of the sales system. Cut-off affects the recording stage of the sales cycle.

This work is licensed under a Creative Commons Attribution 4.0 International License.

The following deficiencies have been identified in a sales system.

For the deficiency, select the MOST likely consequence which might arise as a result of that
deficiency.

• Customers are not required to evidence receipt of goods.

Select ONE answer:

1. Sales may be made to customers who cannot pay
2. Invoices may not be raised for all goods dispatched
3. Customers may not pay promptly
4. Customers might not be happy with the supplier

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct – If customers do not evidence receipt of goods disputes may arise leading to slow payments.
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.

The following deficiencies have been identified in a sales systems.

For the deficiency, select the MOST likely consequence which might arise as a result of that
deficiency.

• Dispatch documentation is not sequentially pre-numbered.

Select ONE answer:

1. Sales may be made to customers who cannot pay
2. Invoices may not be raised for all goods despatched
3. Customers may not pay promptly
4. Customers might not be happy with the supplier

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct – If despatch notes are not pre-numbered they may be lost and therefore no invoice raised.
3. Not correct
4. Not correct

This work is licensed under a Creative Commons Attribution 4.0 International License.