ch 14

Question 1

revenue cycle steps

Answer 1

1. sales order entry
2. shipping
3. biling
4. cash collections

Question 2

sales order entry

Answer 2

receiving customer order/accessing inventory, providing necessary info to the production & expenditure cycle
-sales order document

Question 3

shipping

Answer 3

After receiving sales orders, this step involves preparing and sending the bill of lading and packing slips to customers through carriers, ensuring the correct dispatch of goods.

Question 4

billing

Answer 4

This step processes sales information to generate invoices and monthly statements for customers. It also updates the general ledger with sales details.

Question 5

cash collections

Answer 5

The final step involves receiving payments from customers, depositing cash into the bank, and updating cash receipts in the general ledger.

Question 6

threats and controls for revenue cycle

Answer 6

• checking customer credit
• segregation of duties
• matching picking slips with sale order b4 shipping
  -lock boxes

Question 7

lockboxes

Answer 7

a postal address where customers send their remittances