INTRODUCTION C HAPTER 10 The Revenue Cycle: Sales to Cash Collections • Questions to be addressed in this chapter include: – What are the basic business activities and data processing operations that are performed in the revenue cycle? – What decisions need to be made in the revenue cycle‚ and what information is needed to make these decisions? – What are the major threats in the revenue cycle and the controls related to those threats? 1 of 160 © 2008 Prentice Hall Business Publishing Accounting
Premium Internal control Customer service Customer
• The IT-BPM sector in India is estimated to expand at a CAGR of 9.5 per cent to USD300 billion by 2020. The sector increased at a CAGR of 25 per cent over 2000–13‚ 3-4 times higher than global IT-BPM spend • India is the world’s largest sourcing destination‚ accounting for approximately 52 per cent of the USD124–130 billion market. The country’s cost competitiveness in providing IT services‚ which is approximately 3-4 times cheaper than the US continues to
Premium Economic growth International trade Revenue
Identification: o The main issue is when to recognize the revenue with respect to the new subscriptions‚ keeping in mind the incentive of management to present the financial statements in the best possible light to facilitate the loan from the bank. o The bank is the user of the financial statements and will likely want statements prepared in accordance with GAAP or IFRS‚ as they are more reliable and relevant.
Premium Generally Accepted Accounting Principles International Financial Reporting Standards Management
1. "Revenue hours" represent the key activity that drives costs at Salem Data Services. Which expenses in Exhibit 2 are variable with respect to revenue hours? Which expenses are fixed with respect to revenue hours? Variable expenses: Power Operations: hourly personnel Rent Custodial services Computer leases Maintenance Dep: Computer equipment Dep: Office equipment and fixtures Operations: salaried staff Systems development and maintenance Administration Sales Sales promotion Corporate services
Premium Variable cost Revenue Income statement
South Korea discovered that there was big problem in the headquarters’ overhead cost allocation when he was preparing for the branch operation report. Taejon was a rapidly growing city. with the hard work Kim‚ the Taejon branch raised insurance revenues. However‚ the net income of the Taejon branch was much lower than for the prior year. And this attributed to the inappropriate cost accounting systems. For the underlying cause of applying this accounting method‚ it was believed that the Korean
Premium Cost accounting Cost Revenue
investment‚ and credit activities Objective: Classify transactions using the rules of debit and credit. 3. Which accounts have a normal credit balance? a. Assets and expenses b. Liabilities and expenses c. Assets and revenue d. Liabilities and revenue 4. A debit entry may indicate which of the following: a. An increase in an asset account b. A decrease in an asset account c. An increase in a liability account d. An increase in a capital account Objective: Journalize
Premium Revenue General ledger Generally Accepted Accounting Principles
proper management and necessary strategic investments‚ Natureview was able to grow its revenue from less than $100‚000 in 1989 to $13M in 1999. The problem the current management team is faced with now‚ in early 2000‚ is that the venture capital firm wants to cash out and Natureview needs to find another investor or position itself for acquisition. In order to do so‚ Natureview needs to increase its annual revenue from $13M to $20M‚ by the end of 2001. Natureview’s success in the natural foods channel
Premium Revenue Whole foods Profit margin
Term __D___ 1. Prepaid Rent A. Accrued Revenue __B___ 2. Salaries Payable B. Accrued Expense __C___ 3. Unearned Revenue C. Deferred Revenue __A___ 4. Interest Receivable D. Deferred Expense Fill in the blank:
Premium Generally Accepted Accounting Principles Balance sheet Revenue
Legal form Private Limited Consolidation code U1 Legal status Active Account date 31/12/2009 Source Jordans Number of years 10 BvD indep. indicator D Account currency GBP Size & main activity/industry Op. revenue (Turnover) 5‚218 mil EUR No of employees 9‚159 P/L for period (Net Income) 2‚082 mil EUR No of rec. shareholders 1 No of rec. subsidiaries 4 Company category Very Large Main activity Other telecommunications activities
Premium Asset Balance sheet Generally Accepted Accounting Principles
The Case Interview • What is a case interview? The Case Interview • What specific skills does it assess? • How to prepare for a case interview? • An interactive example. What is a “Case Interview” anyway? The Case Interview Simulation of a business problem. Similar to what our associates encounter every day. Series of open-ended questions. They’re designed to stimulate your conceptual‚ quantitative‚ analytical and – most importantly – creative abilities. The Case Interview There are
Premium Costs Variable cost Revenue