What Accounts Are Included in the Revenue Cycle

In: Business and Management

Submitted By keishaporter
Words 487
Pages 2
Keisha Porter
ACCT330-1402A-01
Phase 1 Individual Project
Professor Sandra Frempong
April 14, 2014

The revenue cycle is the set of activities in a business which brings about the exchange of goods or services with customers for cash and most business transactions are conducted on a credit basis because the cash is not received until after the goods have been shipped to the customers (accounting notes, 2014). For someone to be able to figure out the accounts that a company may use in their business for their revenue cycle you will have to do a corporate general ledger. This will be what the company uses to be able to record all of their financial items and the actual accounting data summaries. There are a number of different accounts that are involved when it come to the revenue cycle. The accounts are sales of goods, provision of services, discounts and rebate from vendors and service providers, gains from marketable securities as varies, stocks, bonds, and derivatives (accounts-generally-included-revenue-cycle-company, 2014). Revenue generally is realized and earned when certain guidelines are recognition and certain criterion has been met. The first thing is there has to be some persuasive evidenced of an arrangements has been set in place and that it does exists. The next thing is that the customer’s has received their products or services already and they have been rendered. Then the next step is that the seller has a fixed price to their buyers that has already been determined for the products or services. The next thing is that the collectability has been reasonably secure. These are the steps that have to done before the U.S. Securities Exchange Commission criteria for revenue recognition. The internal controls would impact your audit in a number of ways. Having internal controls allows your company to be able to have reliable financial reports.…...

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