Revenue cycle is a recurring set of business activities and related information processing operations associated with providing goods and services to customers and collecting cash in payment for those sales. Identify major threats in the revenue cycle and evaluate the adequacy of various control procedures for dealing with those threats read and understand a data model (rea diagram) of the revenue cycle. Revenue cycle during the day, the rea data model classifies entities into three categories: the resources the organization acquires and uses, the events in which.
Easily share your publications and get them in front of issuu's millions of monthly readers draw an rea diagram for sparky's revenue cycle only chapter 18 implementing an rea model. The revenue cycle: sales to cash collections 13 the expenditure cycle: purchasing to cash disbursements 17 database design using the rea data model 18. Chapter 3 3 introduction to rea with simple example introduction to the rea model category revenue cycle overview - duration: 3:53. Resources, events, agents (rea) is a model of how an accounting system can be re-engineered for the computer age rea was originally proposed in 1982 by william e.
To design an rea diagram for an entire ais, one would develop a model for each transaction cycle and then integrate the separate diagrams into an enterprise-wide model however, in this chapter, we focus on the individual transaction cycles. 3) in an expanded revenue cycle rea diagram, sales order number is most likely to be a foreign key in a) call on customer b) fill customer order. Study 54 final exam flashcards from jessika a on relationships in the business process level rea model are based on it is an internal transaction cycle. The revenue cycle: sales to cash collections 13 the expenditure cycle: purchasing to cash disbursements database design using the rea data model.
The data model and internal control rea diagram can highlight violations of segregation of duties and the system can be programmed to prevent the same person from performing incompatible duties with a dbms access controls are very important. Very important powerpoint showing people the combinatory logic of implementing an rea model even in a traditional relational database and the advantages of sim. Welcome to the companion website for accounting information systems, 13e for student resources, choose a chapter above hash calculator.
Pdf | the rea model was first conceptualized in a paper for the 1982 the accounting review as a framework for building accounting systems in a shared data environment, both within enterprises and. Online tutoring help for accounting information systems comprehensive accounting topics and affordable pricing rea data model revenue cycle revenue cycle. Chapter 15: the human resources management and payroll cycle chapter 16: general ledger and reporting system chapter 17: database design using the rea data model.
Revenue cycle infromation needs & data model overall revenue cycle performance measure = revenue margin = gm - all selling costs rea revenue cycle data model. He explains each topic in detail and provides examples of how they each apply to the accounting information systems please subscribe to our channel to get the latest updates on the ru digital.
12 joe's pizzeria 7 12 joe's pizzeria we will create an rea model for joe's pizzeria joe makes revenue by selling pizza to his customers. Accounting information system the primary objective of the revenue cycle: database design using the rea data model rea. Cash is increased by the revenue cycle and decreased by both the expenditure and payroll cycles implementing an rea model in a database 5 chapter 16.