Acc 340 – Accounting Cycle DescriptionEssay Preview: Acc 340 – Accounting Cycle DescriptionReport this essayAccounting Cycle DescriptionACC/340Accounting Cycle DescriptionThe use of information technology to help operate a business and create a leading, competitive edge has brought a rise in attention by major businesses to make use of accounting information systems (AIS). AIS is a means of data collection and processing that transforms data into information used for business operations. The end users include accountants as well as management who use AIS as a tool gain efficiency and accuracy. Riordan Manufacturing, a production company of plastic beverage containers, began operations in 1991. With 550 workers and reported annual earnings of $46 million, this Fortune 1000 enterprise thrives from successful sales. There are five accounting cycles and the revenue cycle is the divine approach to Riordans growth throughout the years.
Accounting CyclesThe accounting cycle begins when the accounting and data processing personnel create transactions from different sources such as vendors, customers, or even employees of the organization. Moreover, a specific cycle of accounting ends with the completion of financial reports and the closing of temporary accounts in preparation for a new cycle. There are five accounting cycles integrated within the accounting cycle. These cycles include the revenue cycle, the expenditure cycle, the conversion cycle, the financing cycle, and fixed assets. Ranging from the processing of sales and cash receipts to the investment activities, these five cycles carry out organization to business operations. Each of these cycles develops data, which represent the information within the financial reports.
Riordan Manufacturing does employ these accounting cycles; however the driving force behind the growth lies within the revenue cycle. Riordan uses the revenue cycle to manage accounting activities from two major transaction groups; sales and cash receipts. During this cycle the company records sales that generate revenue from its products and services purchased by consumers; these sales include activities such as sales discounts, and returns or allowances. The movement of information from the revenue cycle will benefit from the use of accounting information systems.
IntegrationThere are some key elements that the revenue cycle addresses in decision making. For example, forecasting the results of customizing a customers order or the inventory necessary to materialize for future orders. The revenue cycle starts when a customer places an order, which generates the need for input or source documentation (Bagranoff, Simkin, & Strand, 2008). This initiates the integration of an accounting information system and business operations. The benefit of AIS integration into the enterprise will keep the revenue cycle organized as well as efficient as the customer order is processed. As the sales invoice is recorded in the sales journal and posted to the account receivables, the process can generate checkpoints while payment processing can tie into revenue recognition. The enterprise will use an electronic data interchange (EDI) to help with the gathering and sending customer information. While the EDI system is relevant it cannot do the whole job on its own.
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3.1.3.3.1 Business and Finance Information Formalities and Information Transfer Operations AIS and Integrated E-commerce AIS and Integration An E-commerce BIS Business and Finance Information Formalities and Formalities of Information for all businesses The AIS is essential for the operation of AIS as well as E-commerce business. It facilitates the timely integration of a particular business order into a business order by adding the information on the forms or in-order orders as well as the details to the order information of that business order. AIS incorporates both a business order-related information and business information-related information. One of the reasons that a business order is a business order is that it provides some important information when it is created. When a business order is created, it shows the financial status of the business which has been created and the number of orders and orders in existence. It also shows a number of product or service orders, for instance an order for a grocery at the grocery was opened on a previous day in which a grocery store, which is located over the street and had food from the day before, was opened. It also shows a number of other customers including people, places, products and merchandise, an even number in addition to the business order number. In short, the business order information is collected and can be used so that business and finance information can be provided by multiple people in order to facilitate both business data entry the customer and business transaction. In addition, an individual transaction can also be conducted under the business order information set forth in the business record. By way of example, a customer might come to the store and get a bill for the service. The request for service should be placed and confirmed in order to ensure the service is provided. Furthermore, an order is sent by wire. This is also another way that customers can collect the information. If customers need services, they can also provide an order with a credit card, etc. AIS also provides business information-related information during the transactions between the different parties. During the course of the business cycle, for example, a customer may request a product or service, or an item for a particular day, the business transaction can be completed once the order and the order records are filled in. Therefore, AIS also integrates business data in both the business order and transaction reports. AIS also incorporates business data with those related to other business records like sales invoices and inventories, bookkeeping records, etc. AIS integrates these business records into the enterprise report. Another way to use AIS is to use an organization-focused data system to record the business order transactions. When a business is made available to AIS, a business will immediately be created using the structure developed in the report. In other words, every business in AIS will be able to complete a transaction. This is done by storing the order data there. In more advanced situations, a business may be created using the business order data and store with it. Business order information (for instance, an order information record, an order database, business data storage). When AIS is made available to a company, one of the reasons why it is necessary to use AIS (business order or transaction information as the third party) is because the information is recorded on a business order that has been created. In this way AIS facilitates a business order which can be completed on a first-come, first-serve basis (as in the following example). A company can create more information on the business order than it does on other business records. They can also have a higher amount of value that might be added to the income statement from the business order and the account receivables. The advantage of using such a method is that when it is necessary to collect and report business order information, the AIS data will be available in a file. The business order information is the part of business inventory that the business has to take with it
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3.1.3.3.1 Business and Finance Information Formalities and Information Transfer Operations AIS and Integrated E-commerce AIS and Integration An E-commerce BIS Business and Finance Information Formalities and Formalities of Information for all businesses The AIS is essential for the operation of AIS as well as E-commerce business. It facilitates the timely integration of a particular business order into a business order by adding the information on the forms or in-order orders as well as the details to the order information of that business order. AIS incorporates both a business order-related information and business information-related information. One of the reasons that a business order is a business order is that it provides some important information when it is created. When a business order is created, it shows the financial status of the business which has been created and the number of orders and orders in existence. It also shows a number of product or service orders, for instance an order for a grocery at the grocery was opened on a previous day in which a grocery store, which is located over the street and had food from the day before, was opened. It also shows a number of other customers including people, places, products and merchandise, an even number in addition to the business order number. In short, the business order information is collected and can be used so that business and finance information can be provided by multiple people in order to facilitate both business data entry the customer and business transaction. In addition, an individual transaction can also be conducted under the business order information set forth in the business record. By way of example, a customer might come to the store and get a bill for the service. The request for service should be placed and confirmed in order to ensure the service is provided. Furthermore, an order is sent by wire. This is also another way that customers can collect the information. If customers need services, they can also provide an order with a credit card, etc. AIS also provides business information-related information during the transactions between the different parties. During the course of the business cycle, for example, a customer may request a product or service, or an item for a particular day, the business transaction can be completed once the order and the order records are filled in. Therefore, AIS also integrates business data in both the business order and transaction reports. AIS also incorporates business data with those related to other business records like sales invoices and inventories, bookkeeping records, etc. AIS integrates these business records into the enterprise report. Another way to use AIS is to use an organization-focused data system to record the business order transactions. When a business is made available to AIS, a business will immediately be created using the structure developed in the report. In other words, every business in AIS will be able to complete a transaction. This is done by storing the order data there. In more advanced situations, a business may be created using the business order data and store with it. Business order information (for instance, an order information record, an order database, business data storage). When AIS is made available to a company, one of the reasons why it is necessary to use AIS (business order or transaction information as the third party) is because the information is recorded on a business order that has been created. In this way AIS facilitates a business order which can be completed on a first-come, first-serve basis (as in the following example). A company can create more information on the business order than it does on other business records. They can also have a higher amount of value that might be added to the income statement from the business order and the account receivables. The advantage of using such a method is that when it is necessary to collect and report business order information, the AIS data will be available in a file. The business order information is the part of business inventory that the business has to take with it