Revenue Cycle = Includes sales revenues, receivables, and cash receipts
Expenditure Cycle = Includes purchases, payables, and cash disbursements
Inventory Cycle = Includes perpetual inventory, physical counts, and manufacturing costs
Investment Cycle = Includes investments in debt and equity and the income received from investments
Property, Plant, and Equipment Cycle = Includes acquisitions and disposals and related depreciation expense
Payroll and Personnel Cycle = Includes payroll
Financing Cycle = Includes debt and equity financing, repayments to borrowers, interest expense, and dividends
By Becker CPA Review
Thanks for posting about this. My friend is currently trying to figure out the finances for his business. He has been wondering what all of these terms include exactly. I will have to share this with him.
ReplyDeleteGary Puntman | http://www.fbltaxconsulting.com