The Revenue Cycle

REVENUE CYCLE

It is the direct exchange of

finished goods or services for
cash in a single transaction
between a seller and a buyer.
Complex revenue cycle process
sales on credit.
Time lag splits the revenue
transaction into two phases
(1)physical phase and
(2)financial phase.
Two major subsystems : (1)sales

Question no.1

What are the three

processes that
constitute the revenue
cycle?

THE CONCEPTUAL SYSTEM

Processes of Revenue Cycle:
Sales order procedures
Sales return procedures
Cash receipts procedures