Available to users when when they need it Business processes (“All cycles are related”): 1. Revenue - Goods & services are sold for cash or a future promise to receive cash. Transactions in Revenue cycle: Handle customer inquiries | Update sales & A/R for sales | Take customer orders | Receive customer payments | Approve credit sales | Update A/R for collections | Check inventory availability | Handle sales returns, discounts & bad debts | Initiate back orders | Prepare
Words: 811 - Pages: 4
profit/revenue Gross profit = revenue – cost of sale Indicates company direct return * Net profit = net profit before tax/revenue Profit takes administrative and distribution expenses into account * Efficiency * Trade receivables collection period (debtor collection period) Daily basis = avg. trade receivables / credit sales per day * Trade payables collection period Avg. trade payables *365/sales * Inventory turnover = cost of sales / avg. inventories Takes how long to
Words: 574 - Pages: 3
FINANCIAL ACCOUNTING AND REPORTING, PART I PRELIM REVIEWER SY 2015-2016 THEORIES 1. The ASC framework (Choose the incorrect one) a. Sets out the concepts that underlie the preparation and presentation of financial statements for external users. b. Is not a Statement of Financial Accounting Standards and hence does not define standards for any particular measurement or disclosure issue. c. Is concerned with special purpose reports, for example, prospectuses and computations prepared for
Words: 8626 - Pages: 35
applications must be updated to adapt to technology’s changes. Changes must be made to a firm’s revenue, expenditure, human resources / payroll cycle, and financial report in order to keep the firm competitive. Revenue (sales to cash collection) cycle Innovative Changes Install invoiceless billing Company’s can enhance their revenue cycle by offering invoiceless billing or auto-draft. The instant benefits that a company could see would be cost savings from postage and print charges
Words: 1712 - Pages: 7
Chapter 2: Fashion Merchandising Organizations Chapter contents: 2.1 Introduction 2.2 Types of fashion merchandising organization 2.2.1(a) The buying agents 2.2.1(b) Store-owned buying offices 2.2.1(c) Cooperative buying offices 2.2.2 Independent trading companies 2.2.3 Offices of manufacturer-importer 2.3 The major service offered by a fashion merchandising organization 2.3.1 Private label programme 2.3.2 Group purchasing 2.3.3 Centralized buying 2.3.4 Other merchandising services 2.4 The
Words: 8874 - Pages: 36
Cash Receipts Cycle Upon the due date, the company collects payment from its clients usually they pick-up the payment every Friday. However, there are instances of special arrangements for collection for specified day of the week. The collector or messenger collects the payment from its clients and issues a duplicated copy of official receipts. The original is given to the clients as its copy. Before the end of the same banking day, the collector/messenger goes to their depository bank, prepares
Words: 1077 - Pages: 5
acquiring, producing, and selling goods and services o Used by accountants and others • Transaction Cycles: group related events that typically occur in a particular sequence o Acquisition (purchasing) cycle = purchasing and paying for goods or services o Conversion cycle = transforming resources acquired into goods and services o Revenue cycle = providing goods or services to customers and collecting cash • Management Information System (MIS): system
Words: 618 - Pages: 3
CHAPTER 8 NOTES COURSE OBJECTIVE D: Prepare a master budget and use the information in it to analyze the results of operations. This chapter will examine in detail the preparation of a master budget, including schedules for sales, collections, cost of sales, payments, operating expenses, a cash budget, and budgeted income statement and balance sheet. It will discuss the purposes and uses of budgets for managers. Profit planning involves the preparation of a number of budgets, integrated
Words: 1792 - Pages: 8
Current Location 00- Take Test: Non-Timed Test Ch. 1, 2, 14 Content 4bcaed3d-9c03true _433538_1 null _38431_1 Assistive Technology Tips [opens in new window] Instructions Description This is our first "non-timed test," which covers the material from chapters 1, 2, and 14. You will answer 40 questions for 40 possible points. The associated "timed-test" for this week is 30 minutes long, contains of 20 questions, and is worth also 40 points. Both tests must be completed between
Words: 4580 - Pages: 19
Securities+Net A/R Current Liabilities 1.4 Average Collection Period = Avg. A/R * 365 Net Credit Sales 1.5 Inventory Turnover = Costs of Goods Sold Avg. Inventory Day's Inventory = Avg. Inventory * 365 Costs of Goods Sold 1.6 Avg. Payment Period = Avg. Account Payable * 365 Net Purchases 1.7 Cash Cycle = Payment Period - (Days' Inventory+ Collection Period) 1.8 Free Cash Flow = CFO-CFI and Dividends
Words: 551 - Pages: 3
