Chapter 11 - The revenue cycle: sales and cash collections. Describe the basic business activities and related data processing operations performed in the revenue cycle; discuss the key decisions that need to be made in the revenue cycle and identify the information needed to make those decisions; document your understanding of the revenue cycle; identify major threats in the revenue cycle and evaluate the adequacy of various control procedures for dealing with those threats. | Accounting Information Systems 9th Edition Marshall B. Romney Paul John Steinbart The Revenue Cycle: Sales and Cash Collections Chapter 11 Learning Objectives Describe the basic business activities and related data processing operations performed in the revenue cycle. Discuss the key decisions that need to be made in the revenue cycle and identify the information needed to make those decisions. Document your understanding of the revenue cycle. Identify major threats in the revenue cycle and evaluate the adequacy of various control procedures for dealing with those threats. Read and understand a data model (REA diagram) of the revenue cycle. 11- Introduction Alpha Omega Electronics (AOE) is a manufacturer of consumer electronic products. For three years, AOE lost market share. Cash-flow problems have necessitated increased short-term borrowing. 11- Introduction Elizabeth Venko, the controller, Trevor, and Ann were asked to investigate several issues: How could AOE improve . | Accounting Information Systems 9th Edition Marshall B. Romney Paul John Steinbart The Revenue Cycle: Sales and Cash Collections Chapter 11 Learning Objectives Describe the basic business activities and related data processing operations performed in the revenue cycle. Discuss the key decisions that need to be made in the revenue cycle and identify the information needed to make those decisions. Document your understanding of the revenue cycle. Identify major threats in the revenue cycle and evaluate the adequacy of various control procedures for dealing with those threats. Read and understand a data model (REA diagram) of the revenue cycle. 11- Introduction Alpha Omega Electronics (AOE) is a manufacturer of consumer electronic products. For three years, AOE lost market share. Cash-flow problems have necessitated increased short-term borrowing. 11- Introduction Elizabeth Venko, the controller, Trevor, and Ann were asked to investigate several issues: How could AOE improve customer service? What information does Marketing need to perform its tasks better? How could AOE identify its most profitable customers and markets? How can AOE improve its monitoring of credit accounts? How would any changes in credit policy affect both sales and uncollectible accounts? How could AOE improve its cash collection procedures? 11- Learning Objective 1 Describe the basic business activities and related data processing operations performed in the revenue cycle. 11- Revenue Cycle Business Activities The revenue cycle is a recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales. 11- Revenue Cycle Business Activities What are the four basic revenue cycle business activities? Sales order entry Shipping Billing and accounts receivable Cash collections 11- Revenue Cycle Business Activities: Sales Order Entry Sales order entry process .
