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15 Cards in this Set
- Front
- Back
revenue cycle
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deals with selling goods and services to customers and collecting the money, split into sales and cash receipts cycle
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revenue cycle-departments
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billing, accounts receivable, marketing, logistics (warehouse, shipping, receiving), credit and cash receipts, mailroom, internal auditor
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revenue cycle-basic steps
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obtain customer credit, check credit, enter sales order, ship goods (or back order), bill customer, provide for sr&a if dissatisfied, collect cash, write off bad a/r
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revenue cycle-basic journal entries
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record credit sales (gross or net), record cash collection, record sales r&a, record write-off
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revenue cycle-control objectives
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safeguard inventories, safeguard cash received from customers and deposit ASAP, extend credit to those who will probably pay, try to collect A/R, authorize all revenue cycle transactions, accurately record transactions, safeguard cycle acctg records
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credit sales-documents
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customer purchase order, sales order, bill of lading, invoice, customer stmt
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bill of lading
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document that specifies details about the shipment of goods from the seller to the buyer, includes name, shipping address, details about shipper, goods, quantity, weight, fees
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FOB shipping point
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free on board, seller is not paying shipping charges
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FOB destination point
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free on board, buyer is not paying shipping charges
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sales returns-documents
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sales return memo, credit memo
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cash receipts-documents
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remittance advices, cash receipts prelist, checks, deposit slips
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remittance advice
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document sent by a customer when making a payment to ensure that the correct account is reduced
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cash receipts prelist
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document that shows the customers who have mailed cash to the corporation and how much
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write-offs of a/r-documents
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write-off memo-specifies which accoutns to write off as uncollectible
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aged accounts receivable report
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describes the existing customer accounts in terms of how long they have been unpaid
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