Accounting Cycle Description Essay - 1480 Words

The five accounting cycles in an organization are: The revenue cycle, expenditure cycle, financing cycle, fixed assets cycle, and the conversion cycle. The revenue cycle is the set of activities in a business bringing about the exchange of goods or services with customers or consumers for cash, such as sales orders, accounts receivables, cash receipts (Hall, 2004), and cost of goods sold. The expenditure cycle is an external exchange of information between vendors and the company. The expenditure cycle takes information from the revenue cycle, production cycle, and other cycles (Romney Steinbart, 2006). The expenditure cycle includes inventory, accounts payable, payroll, and cash payments. The conversion cycle is very important to†¦show more content†¦Riordan is currently looking at an integrated customer management system, which will go along with their newly formed team selling approach. By using an integrated system, management will be better able to check the accuracy o f each salesperson’s data. Riordan Manufacturing has mandatory training in place for each of its new employees, which must be completed by each employee within 90 days of being hired. This includes a New Employee Orientation for each new hire and Six Sigma training for production, shipping, and quality employees. When supervisors are either promoted or hired they are required to take additional training within 12 months. By requiring training, Riordan is establishing a good Control Environment, which is necessary for good internal control. Riordan’s mission statement says they are â€Å"assuring that our employees are well informed and properly supported, we will provide a climate focused on the long term viability of our company.† This part of the mission statement shows that Riordan is working on providing information and communication with its employees, which allows the internal control process to move along more smoothly. Although Riordan has some weakness es with its internal control, they seem to be looking for ways in which to improve the situation. They are doing so by integrating the sales records; requiring training not only for new employees butShow MoreRelatedRiordan Manufacturing – Accounting Cycle Description Essay1332 Words   |  6 PagesRiordan Manufacturing – Accounting Cycle Description Introduction Riordan Manufacturing, Inc. is an industry leader in the field of plastic injection molding. Using cutting edge art design capabilities, this Fortune 1000 Enterprise Company maintains facilities in San Jose, California, Albany, Georgia, Pontiac, Michigan and Hangzhou, China, and has annual earnings of $46 million. A company does not attain and maintain this type of success by accident. Part of Riordan’s success is due to itsRead MoreBasic Accounting Syllabus1024 Words   |  5 PagesCourse Syllabus Basic Accounting School Year 2011-2012 First Semester I. CATALOGUE COURSE DESCRIPTION A. Course Code and No.: ACCTG 1 B. Course Title: Basic Accounting C. Course Description: Basic accounting introduces the importance of accounting and also the basic steps and techniques used. The material covered will also include coverage of the principles and procedures of the accounting cycle for a sole proprietorship and merchandising organizations. 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