Business Processes

Question 1

What are used in the revenue cycle?

There are three in total

Answer 1

• Source documents
• Journals
• Ledgers

Question 2

Define Source documents and what is included?

Answer 2

Source documents: capture transaction data needed for a transaction

• Purchase requisition
• Purchase order
• Receiving report
• Invoice (vendor)

Question 3

What are the two journals?

What is are examples?

Answer 3

• Special journals: repeat
• General:

• Purchase journal, cash disbursements sales cash receipts
• Legal cost, adjusting entries

Question 4

What are Ledgers?

what are the two examples

Answer 4

• book of financial accounts

* General ledger
* Subsidiary ledgers

Question 5

Define
* General ledger
* Subsidiary ledgers

Answer 5

• General ledger: summary of each account on a chart of accounts
• Subsidiary ledgers: activity detail for each individual subaccount

General: Control accounts, accounts payable, inventory
Sub: accounts payable subsidiary ledger, inventory sub-ledger

Question 6

What are master, transaction, archive, and reference files in a computerized system

Answer 6

• Master: shows the current balance of the account
• Transaction: Contain transactions stored in chronological order
• Archive: ontain all transactions that have been processed
• Reference files: Contain stable information (customer address) used where a single record might be used by multiple transaction records

Question 7

How are the master, transaction, archive and refrence fules used to trace sales form Balance sheet

Answer 7

• Master: Keep the current balance of the total accounts
• Transaction: “Source douments”
• Archive : transactions that have been processed and used to update master files
• Reference: Files from the begginging,
  
  • PO/ MEMO ect.

Question 8

how are they used to trace a sale from the source document to the balance sheet

Answer 8

• The utilization of a master file has the ending balance of an account. In this case, AR. We take this number and compare it to the customer master to ensure the value is the same. Next, we go into sub-ledgers and backtrack the values, we add those values to confirm the master. Lastly, we can use reference files to confirm who/what was ordered is correct.