Pre-assessment Test – Billing And Accounts Receivable

Billings can be computed as frequently as required because they are typically based on the number of units sold or services provided within a specific time period. Therefore, a company can choose to calculate billings on a daily, weekly, monthly, or any other frequency that suits their business needs. This flexibility allows businesses to track and manage their revenue generation effectively.

If you do not wish the provisional billing rate percentage to appear on the billings for the contract/task, you would select "Suppress provisional billing rates." This means that the billing rates that are still being determined or are not yet finalized will not be shown on the billings.

The given correct answer is "Header Information". This is because the question is asking for the three-line billing description that will print at the top of the bill, and "Header Information" is the most appropriate description for this purpose. It encompasses the prime and other contract number, billing address, and contract/task name, which are all essential details that would typically be included in the header section of a bill.

The T&M Billing Rates File is used to enter billing rates and ceilings for each labor category on T&M contracts. It is also used to enter labor hour budgets by category for all types of contracts. This file helps in managing and tracking the billing rates and budgets associated with different labor categories, ensuring accurate and efficient billing and budgeting processes.

The correct answer is "Current Year's Billable Data". This option is used to initialize some or all of the year-to-date current year's billing amounts for CPFF and Fixed Price Contract. It suggests that the current year's billable data is essential for calculating and tracking the billing amounts for these types of contracts. The other options mentioned, "Prior Year's Billable Data" and "Billing Master File," may also be relevant for billing purposes but are not specifically mentioned in the given explanation.

The T&M Supporting Schedule provides a detailed breakdown of the timesheet dates, hours, billed amounts, billing rate, and labor category for each employee who has charged to a specific contract. It serves as a supporting document for T&M (Time and Materials) billing, providing the necessary information to validate and justify the billed amounts for labor expenses.

The correct answer is "Based on Billings." This means that when using the Revenue Basis option in the Contract Master File, the billings need to be calculated and recorded in the general ledger (GL) before the revenue can be computed. This suggests that the revenue recognition is tied to the actual billings made to the customer, rather than being based on the GL entries alone.

The correct answer is False. All prior year billing amounts for T&M contracts, including billings in the current year, should not be entered in the Current Year's Billable Data file.

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The information in the Billing Master File defaults from the Contract Master File. This means that the Billing Master File automatically pulls the necessary information from the Contract Master File to populate its own records. The Contract Master File contains all the relevant details about the contracts, such as billing terms, rates, and customer information. By defaulting the information from the Contract Master File, the Billing Master File ensures accuracy and consistency in the billing process.

A billing worksheet is used to review billing amounts and to identify unbilled costs. It is a document or spreadsheet that helps in tracking and organizing billing information, such as the services provided, quantities, rates, and any additional costs. By using a billing worksheet, individuals or businesses can ensure accuracy in their billing process, identify any discrepancies or missing charges, and ultimately ensure that all costs are properly accounted for and billed to the appropriate parties.

The correct answer is the "Labor Detail Billing file." This file is initialized when a Certificate of Performance for Labor needs to be attached to government billings. It is a record or document that contains detailed information about the labor performed, such as the number of hours worked, rates, and any additional charges. This file helps in accurately billing the government for the labor services provided and ensures compliance with regulations and requirements.

The address that prints on bills defaults from the GL Control File.

The Cash Receipts Report is used to generate a list of all receipts not posted to the GL, in receipt number order. This report provides a comprehensive view of all cash receipts that have not been recorded in the general ledger, allowing for easy identification and tracking of any outstanding receipts. By generating this report, businesses can ensure that all cash receipts are properly accounted for and posted to the GL, maintaining accurate financial records.