Acc 340 Week 1 Accounting Cycle Description Paper
Accounting Cycle Description Paper
DeDe Gearhardt, Jen Walker, Neal Hennessy
ACC/340
02/02/2015
Joyce Williams
Accounting Cycle Description Paper
Currently we see that Riordan has three operating locations, each of these locations have their own accounting departments that each keep their own records. These records are all combined in the corporate office at the end of each period. Each accounting department contains the following system components, General Ledger, Accounts Payable, Accounts Receivable, Order Entry, Procurement, Sales and Purchasing, Invoicing and Shipping, Payroll, Financial Reporting, EDI, Bar Code Reading, And Executive Decisions Support System. In this paper we discuss the accounting cycle for Riordin Manufacturing. …show more content…
Each cycle is important in its own right to the general book keeping of virtually any organization. The five cycles are revenue, expenditure, conversion, financing, and fixed asset. The revenue cycle includes sales and cash receipts. Sales includes, “all revenue earned from goods and services purchased by consumers. Also included are sales discounts, returns or allowances” (Thomason). Cash receipts “represent the actual cash received by a company” (Thomason). Additionally, the revenue cycle includes sales discounts, returns and allowances. The expenditure cycle encompasses purchases of goods and services necessary to run the business. The conversion cycle covers the production of goods and uses the information from the expenditure cycle to accurately expense produced goods. The financing cycle records and reports on things such as debt, stocks, dividends, and any other financing operations. The fixed asset cycle deals with the purchase, sale, and depreciation of assets used in production such as equipment and property. Together, these five cycles encompass the whole of accounting for an
DeDe Gearhardt, Jen Walker, Neal Hennessy
ACC/340
02/02/2015
Joyce Williams
Accounting Cycle Description Paper
Currently we see that Riordan has three operating locations, each of these locations have their own accounting departments that each keep their own records. These records are all combined in the corporate office at the end of each period. Each accounting department contains the following system components, General Ledger, Accounts Payable, Accounts Receivable, Order Entry, Procurement, Sales and Purchasing, Invoicing and Shipping, Payroll, Financial Reporting, EDI, Bar Code Reading, And Executive Decisions Support System. In this paper we discuss the accounting cycle for Riordin Manufacturing. …show more content…
Each cycle is important in its own right to the general book keeping of virtually any organization. The five cycles are revenue, expenditure, conversion, financing, and fixed asset. The revenue cycle includes sales and cash receipts. Sales includes, “all revenue earned from goods and services purchased by consumers. Also included are sales discounts, returns or allowances” (Thomason). Cash receipts “represent the actual cash received by a company” (Thomason). Additionally, the revenue cycle includes sales discounts, returns and allowances. The expenditure cycle encompasses purchases of goods and services necessary to run the business. The conversion cycle covers the production of goods and uses the information from the expenditure cycle to accurately expense produced goods. The financing cycle records and reports on things such as debt, stocks, dividends, and any other financing operations. The fixed asset cycle deals with the purchase, sale, and depreciation of assets used in production such as equipment and property. Together, these five cycles encompass the whole of accounting for an