ACC 340 Study Guide - Summer 2018, Comprehensive Midterm Notes - Ontology, Unique Key, Third Normal Form
Document Summary
Income statement, owners equity/retained earnings statement, balance sheet, cash flow statement. Three main sections of the financial statement that tells us what we own. Three major types of activities of a business. Cash paid on an account payable is what. Steps of revenue cycle: sales order entry/acceptance, pick pack ship, billing for goods shipped, cash collections/receipts. Aka sales collection business process, fulfillment, quote to cash, sales. Take the customer order (sales order), approve customer credit, check inventory availability, respond to customer inquiries. Adjust inventory (with copy of packing slip from shipping). Invoice the customer (sales invoice), update accounts receivable (credit memo), adjust inventory levels. Process customer payment and update account balance (remittance list). Deposit payments in the bank, use a lockbox in the meantime, journal entry would reflect an increase in cash and reduction in ar. Expenditure cycle steps: determine what you need, order what you need, receive goods/services, approve invoice/pay for what you received.
