Read this post and article: The accounting cycle that I chose to write about in this discussion is he revenue cycle. The revenue cycle, "records transactions from sale to receipt of payment" (Benge, nd). Every company has different steps in their respective revenue cycle, however, they generally all use the same type of procedure. Every company begins by making a product or service and ends with the full payment (Benge, nd).

Manufacturing companies start their revenue process by manufacturing their product. Then they go through the process of trying to sell their product and make revenue for the company. Orders are placed, then an invoice generally gets sent to the manufacturing plant where the product gets shipped out. The customer can either pay upfront or pay on credit.

Service industries are different than manufacturing companies and have less steps in the revenue cycle. "The transactions in the revenue cycle may consist of only an invoice and recording the payment in the company's books" (Benge, nd). A good example is anything that provides a service with no tangible product being given to the customer.

The AIS is important to the revenue cycle as it shows who has payed the money the company is owed. If someone hasn't paid the money they owe it will show up here too. The AIS helps companies keep track of how much they have made versus how much it took them to make the service or product. The steps in the revenue cycle show control over the AIS because they companies can use the AIS to check that the revenue cycle is accurate. It is important for managers within companies to make sure their company is being run the proper way and the AIS can help them do that.

References:

Benge, Vicki A. (n.d.). Examples of a Revenue Cycle of a Company. Retrieved from

https://smallbusiness.chron.com/examples-revenue-cycle-company-14333.html.

QUESTION - evaluate your peers' articles for their usefulness to managers.