Академический Документы
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Processing
TPS applications process financial transactions. A financial transaction
was defined in Chapter 1 as
Expenditure Cycle
An expenditure cycle is a set of purchasing decisions and actions.
It's the repetitive process of creating purchase orders and ordering
goods and services, receiving these items, approving the invoices
for these items and services, and paying the invoices.
Conversion Cycle
The cash conversion cycle is a metric used to gauge the
effectiveness of a company's management and, consequently, the
overall health of that company. The calculation measures how fast
a company can convert cash on hand into inventory and accounts
payable, through sales and accounts receivable, and then back
into cash.
Revenue Cycle
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.
RELATIONSHIP BETWEEN TRANSACTION CYCLES
RELATIONSHIP BETWEEN TRANSACTION CYCLES
RELATIONSHIP BETWEEN TRANSACTION CYCLES
Accounting Records
MANUAL SYSTEMS
This section describes the purpose of each type of accounting
record used in transaction cycles. We begin with traditional records
used in manual systems (documents, journals, and ledgers) and
then examine their magnetic counterparts in computer-based
systems.
Documents
A document provides evidence of an economic event and may be
used to initiate transaction processing. Some documents are a result
of transaction processing. In this section, we discuss three types of
documents: source documents, product documents, and
turnaround documents.
Source Documents. Economic events result in some documents
being created at the beginning (the source) of the transaction.
These are called source documents. Source documents are used to
capture and formalize transaction data that the transaction cycle
needs for processing.
Product documents are the result of transaction processing rather
than the triggering mechanism for the process. For example, a
payroll check to an employee is a product document of the payroll
system.
Turnaround documents are product documents of one system that
become source documents for another system.
A journal is a record of a chronological entry. At some point in the
transaction process, when all relevant facts about the transaction
are known, the event is recorded in a journal in chronological order.
Documents are the primary source of data for journals.
SPECIAL JOURNALS. Special journals are used to record specific
classes of transactions that occur in high volume. Such transactions
can be grouped together in a special journal and processed more
efficiently than a general journal permits.
Register
The term register is often used to denote certain types of special
journals. For example, the payroll journal is often called the payroll
register.
GENERAL JOURNALS. Firms use the general journal to record
nonrecurring, infrequent, and dissimilar transactions.
A ledger is a book of accounts that reflects the financial effects of
the firms transactions after they are posted from the various
journals. Whereas journals show the chronological effect of business
activity, ledgers show activity by account type. A ledger indicates
the increases, decreases, and current balance of each account.
Organizations use this information to prepare financial statements,
support daily operations, and prepare internal reports.
GENERAL LEDGERS.The general ledger (GL) summarizes the activity
for each of the organizations accounts. The general ledger
department updates these records from journal vouchers prepared
from special journals and other sources located throughout the
organization