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Paper Topic:

Accounting Information Systems problems

Running Head : Integration of Expenditure and Revenue Cycles

Integration of Expenditure and Revenue Cycles






Integration of Expenditure and Revenue Cycles


An integrated REA is a diagram that combines these the revenue cycle and the expenditure cycle . A revenue cycle shows the financial progression of a firm of their accounts receivables and it begins when they first make a purchase until they sell a product . The cycle is completed when the firm gets full payment for sell . The management of these two

cycles is important to every organization as it helps in determining the financial position . That is , is the firm able to meet all the obligations and does it have sufficient cash flow . The REA works together with the information system for efficiency

This is a system that enables the flow of information from one point to the other . It may be between the departments or between the firm and the stakeholders . REA diagrams simplify information by integrating multiple events and resources

The expenditure cycle shows the firms financial progression on the accounts payable . The cycle breaks when all the creditors get paid or the employees . There are many questions addressed in chapters 16 and 17 of Accounting Information 's Systems by Romney and Steinberg (2006 . The chapter addresses the questions of how an individual transaction cycle can be integrated into a single organizations REA cycle . The revenue and expenditure cycles are examples of an individual transaction cycles

The chapter also addresses the questions...

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