ACCT 4310 / ACCT4310 Quiz Submissions - Quiz5A Car Star BPD LATEST 2022

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Your quiz has been submitted successfully. 0 / 0.91 points Questions 1-6 are based on the business process in the CarStar BPD. Suppose the dealer’s net sales numbers are correct but the CarStar d... ashboard shows higher net sales than the dealer’s dashboard shows. The most likely source of this discrepancy is: Question options: 1) Dealers issued duplicate refunds for returned vehicles 2) Dealers recorded no sales returns for returned vehicles 3) The CarStar dashboard included duplicate sales returns 4) The CarStar dashboard omitted some sales returns Hide Feedback Because CarStar executives want to maximize net sales, the most likely source of the discrepancy given the stated fact pattern is that the “CarStar dashboard omitted some sales returns.” Not recording returned vehicles as sales returns timely would result in inflated net sales numbers on the CarStar dashboard. Issuing refunds for returned vehicles is independent of sales recording. CarStar’s failure to record sales returns timely would inflate CarStar’s net sales. 0.91 / 0.91 points Suppose the dealer’s sales numbers are correct but the CarStar dashboard shows lower net sales than the dealer dashboard shows. The most likely source of the discrepancy is: Question options: 1) Delays in recording vehicle sales at CarStar 2) Delays in recording vehicle sales at the dealer 3) CarStar occasionally recording duplicate sales 4) CarStar failing to record sales returns timely Hide Feedback The most likely source of the discrepancy is a delay in recording sales at CarStar. Similarly, the dealer recording duplicate sales would make the dealer’s net sales totals incorrect. CarStar’s failure to record sales returns for returned vehicles would cause CarStar dashboard to show more net sales than the dealer dashboard. 0.91 / 0.91 points Suppose a software upgrade to the dealer’s system causes it to record sales returns correctly when customers return vehicles but fails to record cancellations of loans, if any, for those vehicles. To identify sales for which the loans might need to be reversed, you could examine sales for which: Question options: 1) The down payment was significantly more than the sales price. 2) The down payment was significantly less than the sales price. 3) The payment at sale closing is the same as the sales price. 4) No relationship exists between sales price and loan amount. Hide Feedback Because customers pay off loans over a period of many months, the down payment recorded on sales with loans will be significantly less than the sales price. 0.91 / 0.91 points Suppose that due to a 10-hour power outage, CarStar could not record dealer transactions that occurred during the outage. To record the missing transactions, CarStar should obtain records of: Question options: 1) The transactions that occurred during the outage when the need for the records becomes known. 2) Sales and loans made just before and during the outage for vehicles that were not returned. 3) The transactions that occurred at the dealer just before through just after the power outage. 4) The transactions that occurred at the dealer during the week of the power outage. Hide Feedback CarStar needs to record the missing transactions as the dealer recorded them during the power outage. Getting the transactions that occurred just before through just after the power outage would allow inspecting the dealer's transactions to find the ones CarStar had not recorded. Recording transactions “that occurred at the dealer on the day of the outage” would record duplicate transactions that occurred on the day of the outage but outside the 10-hour outage period. CarStar should not wait until the need for the records becomes known because CarStar likely would never get around to recording them. Recording only the sales and loans for vehicles not returned would omit the transactions of payment, sales returns, and refunds, all of which are essential for analyzing sales and dealer operations. 0.91 / 0.91 points Suppose a hacker got into the dealer’s accounting system, but the dealer’s IT staff cannot determine when the system penetration occurred or whether sales transactions were corrupted. To determine which transactions were corrupted (if any), CarStar’s IT staff, having more expertise than the dealer’s IT staff , should: Question options: 1) Compare the dealer’s sales transactions to those recorded at CarStar and replace any erroneous transactions. 2) Compare counts of dealer sales transactions to CarStar counts and replace any corrupted files. 3) Compare the dealer’s monthly sales report to CarStar’s monthly report and replace erroneous transactions. 4) Replace the dealer’s transactions with CarStar-recorded transactions for the same time period. Hide Feedback Dealer transactions should be compared to the ones CarStar recorded, and erroneous transactions should be replaced. Of the choices, this is the one that maximizes finding all the corrupted sales transactions, if any. Transaction counts could be correct even if transaction amounts are incorrect. Comparing monthly sales reports might indicate a data problem but would not identify specific erroneous transactions. Because the time of the penetration is unknown, restoring from the dealer’s off-site backup may perpetuate any erroneous transactions. 0.91 / 0.91 points The dealer’s accounting entry when a customer returns a vehicle with a loan is most likely: Question options: 1) No accounting entry is required 2) Debit sales returns; Credit cash and loans receivable Debit cost of goods sold; Credit inventory [Show More]

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