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The document classifies twenty-six business activities into five cycles: revenue, expenditure, human resources/payroll, production, or financing. Items like paying for raw materials, utilities, taxes, and commissions fall under the expenditure cycle. Hiring employees, paying payroll taxes, and providing training are classified as human resources/payroll. Obtaining loans and credit are considered financing activities. Production involves deciding unit quantities. Revenue cycle captures selling products, services, setting customer credit limits, and collecting payments.

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391 views1 page

1 8

The document classifies twenty-six business activities into five cycles: revenue, expenditure, human resources/payroll, production, or financing. Items like paying for raw materials, utilities, taxes, and commissions fall under the expenditure cycle. Hiring employees, paying payroll taxes, and providing training are classified as human resources/payroll. Obtaining loans and credit are considered financing activities. Production involves deciding unit quantities. Revenue cycle captures selling products, services, setting customer credit limits, and collecting payments.

Uploaded by

jjjj
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1.

8 Classify each of the following items as belonging in the revenue, expenditure, human
resources/payroll, production, or financing cycle.

a. Purchase raw materials Expenditure cycle


b. Pay off mortgage on factory Financing cycle
c. Hire a new assistant controller Human resources/payroll cycle
d. Establish a $10,000 credit limit for a new customer Revenue cycle
e. Pay for raw materials Expenditure cycle
f. Disburse payroll checks to factory workers - Human resources/payroll cycle
g. Record goods received from vendor Expenditure cycle
h. Update the allowance for uncollectible accounts Revenue cycle
i. Decide how many units to make next month Production cycle
j. Complete picking ticket for customer order Revenue cycle
k. Record factory employee timecards - Human resources/payroll cycle
l. Sell concert tickets Revenue cycle
m. Draw on line-of-credit Financing cycle
n. Send new employees to a business ethics course - Human resources/payroll cycle
o. Pay utility bills Expenditure cycle
p. Pay property taxes on office building Expenditure cycle
q. Pay federal payroll taxes - Human resources/payroll cycle
r. Sell DVD player Revenue cycle
s. Collect payment on customer accounts Revenue cycle
t. Obtain a bank loan Financing cycle
u. Pay sales commissions - Human resources/payroll cycle
v. Send an order to a vendor Expenditure cycle
w. Put purchased goods into the warehouse Expenditure cycle

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