Module 5

Question 1

What are the phases of the Stock cycle?

Answer 1

1. Receive goods
2. Stock movements (between locations)
3. Stock holding
4. Stock valuation
5. Order fulfilled and despatched

Question 2

What are the phases of the fixed asset cycle?

Answer 2

1. identify the need for the asset
2. management or board approval
3. order asset
4. receive asset/ownership
5. receive invoice
6. pay

Question 3

What are the phases of the payroll cycle?

Answer 3

1. work done and time recorded
2. calculation of payroll liability
3. payment of payroll

Question 4

What are the phases of months financial reporting?

Answer 4

1. month end journals
2. month end reconciliations
3. stock counts
4. production of management accounts
5. production of financial statements