"The revenue cycle is the set of activities in a business which brings
about the exchange of goods or services with customers for cash"
(Hall, n.d.). a The revenue cycle allows businesses to anticipate cash
flows and monitor transactions at all phases. There are two phases to
the process. The first phase is the physical transaction where
services or goods are transferred to the buyer. a The second phase
financial in nature and is where cash is received by the buyer for the
goods or services (Hall, n.d.). AIS is essential to automation within the
many parts of the revenue cycle. a For example, a POS system would
automize sales, order processing and cash receipts from simple data
processing. a
The article that I read was Revenue Cycle In Accounting Information
Systems. a It is linked below. It discusses the revenue cycle involving
buyers and sellers. "The four basic activities in the income cycle are
order sales, shipping, billing and accounts receivable entries, and cash
billing entries" (Susanto, 2019). It also discusses automation of
processes and the importantce of internal controls to reduce threats
(such as collection errors and cash losses). a
References:
Azhar Susanto, M. (2019, June 6). Revenue cycle in accounting
information systems - IJSTR. Retrieved January 5, 2023, from
https://www.ijstr.org/final-print/june2019/Revenue-Cycle-In-
Accounting-Information-Systems.pdf
Hall, J. A. (n.d.). The Revenue Cycle. Accounting Information Systems,
4th. Ed. Retrieved January 5, 2023, from
https://www.swlearning.com/accounting/hall/ais_4e/study_notes/c
h04.pdf
Romney, M. B., Steinbart, P. J., Summers, S. L., & Wood, D. A. (2021).
Accounting Information Systems (15th ed.). Pearson Education, Inc.
