The Accounting System Cycle: Introduction

Question 1

What is the accounting cycle?

Answer 1

Accounting system accumulates and reports information on financial position of the entity

• Categorize business accounting activities
• Set of procedures to accumulate financial information

Question 2

List characteristics of the revenue chyle?

Answer 2

1) Finished goods from production
2) Provide data to the vernal ledger and report
3) Provide funds to the financing cycle

Question 3

List characteristics of the financing cycle?

Answer 3

1) Get $ financing cycle
2) Provide data to the general ledger and reporting
3) . Provide raw materials to production

Question 4

List characteristics of the production cycle?

Answer 4

1) . Get labor from Human Resources
2) Receive money from financing
3) Receive raw materials from expenditures
3) Provide data to general cycle
4) Provide finished goods to revenue

Question 5

List characteristics from human resource cycel/

Answer 5

1) Gets fund from financing cycle
2) Provides data to the general ledger and reporting system
3) Provides labor to production

Question 6

List characteristics of financing cycle?

Answer 6

1) Gets funds from revenue
2) Provides funds to expenditure and HR/payroll
3) Provides data to general ledger reporting

Question 7

List characteristics from general ledger and reporting?

Answer 7

1) . Gets data from all cycles

2) Provides information to internal and external users

Question 8

What are common risks across cycles?

Answer 8

No functioning as required by law, regulation, or organizational policy

Completeness of data

• Transactions are authorized
• Recorded transactions are value
• Recorded accurately

Safeguarding assets- from loss or theft

Efficiency

Compliance

Reporting needs to full and fair

Data integrity