preview

Ais Financing Cycle

Better Essays

INTRODUCTION

C HAPTER 10
The Revenue Cycle: Sales to Cash Collections

• Questions to be addressed in this chapter include:
– What are the basic business activities and data processing operations that are performed in the revenue cycle? – What decisions need to be made in the revenue cycle, and what information is needed to make these decisions? – What are the major threats in the revenue cycle and the controls related to those threats?
1 of 160 © 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart 2 of 161

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

INTRODUCTION
• The revenue cycle is a recurring set of business activities and …show more content…

Bill of Lading & Packing Slip

2.2 Ship Goods
Goods, Packing Slip, & Bill of Lading

Inventory

Billing & Accts. Rec.

Shipments

Carrier

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

11 of 161

© 2008 Prentice Hall Business Publishing

Accounting Information Systems, 11/e

Romney/Steinbart

12 of 161

2

BILLING
• The third revenue cycle activity is billing customers. • This activity involves two tasks:
– Invoicing – Updating accounts receivable

Sales Order Entry

Sales Order

3.1 Billing

& Packing Slip Bill of Lading

Shipping

Invoice Sales

General Ledger & Rept. Sys.

Customer

Sales ta te nt me s

Customer

Billing and Accounts Receivable
© 2008 Prentice Hall Business Publishing Accounting Information Systems, 11/e Romney/Steinbart 13 of 161 © 2008 Prentice Hall Business Publishing

3.2 Maintain Accts. Rec.

Mo

n th

ly S

Mailroom
Remittance List

Accounting Information Systems, 11/e

Romney/Steinbart

14 of 161

REVIEW OF REVENUE CYCLE ACTIVITIES

Get Access