Accounting Cycle Description Paper Essay Sample

Presently we see that Riordan has three operating locations. each of these locations have their ain accounting sections that each maintain their ain records. These records are all combined in the corporate office at the terminal of each period. Each accounting section contains the undermentioned system constituents. General Ledger. Histories Collectible. Histories Receivable. Order Entry. […]

Presently we see that Riordan has three operating locations. each of these locations have their ain accounting sections that each maintain their ain records. These records are all combined in the corporate office at the terminal of each period. Each accounting section contains the undermentioned system constituents. General Ledger. Histories Collectible. Histories Receivable. Order Entry. Procurement. Gross saless and Purchasing. Invoicing and Shipping. Payroll. Financial Reporting. EDI. Bar Code Reading. And Executive Decisions Support System. In this paper we discuss the accounting rhythm for Riordin Manufacturing.

There are five accounting rhythms. Each rhythm is of import in its ain right to the general book maintaining of virtually any organisation. The five rhythms are gross. outgo. transition. funding. and fixed plus. The gross rhythm includes gross revenues and hard currency grosss. Gross saless includes. “all gross earned from goods and services purchased by consumers. Besides included are gross revenues price reductions. returns or allowances” ( Thomason ) . Cash grosss “represent the existent hard currency received by a company” ( Thomason ) . Additionally. the gross rhythm includes gross revenues price reductions. returns and allowances.

The outgo rhythm encompasses purchases of goods and services necessary to run the concern. The transition rhythm covers the production of goods and uses the information from the outgo rhythm to accurately write off produced goods. The funding rhythm records and studies on things such as debt. stocks. dividends. and any other funding operations. The fixed plus rhythm trades with the purchase. sale. and depreciation of assets used in production such as equipment and belongings. Together. these five rhythms encompass the whole of accounting for an organisation. For Riordan Manufacturing. the gross rhythm includes all of the gross revenues of the merchandises that are manufactured.

By and large talking. this includes the sale of a broad assortment of plastic merchandises used for a similarly broad assortment of applications. Besides accounted for in the gross rhythm are any gross revenues price reductions given to clients and any returns and allowances. Internal controls on this rhythm include things like segregating responsibilities. supplying and maintaining grosss. doing timely sedimentations and more. These controls are strong in the sense that grosss can now be stored electronically and segregating responsibilities lessens the opportunity of human mistake or knowing fraud. Conversely. these controls aren’t peculiarly strong given the broad assortment of price reductions available every bit good as the volume of returns and allowances for such a big maker. As a consequence consistent auditing is necessary to guarantee truth and honestness in the gross rhythm. Riordan Manufacturing Company has an accounting information system ( AIS ) that is intertwined with Enterprise Resource Planning ( ERP ) that makes the plan into the Enterprise- Wide Accounting System.

The Accounting Information System and Enterprise Resource Planning ( ERP ) are associated with fundss and accounting. The computer-based system is where an person can roll up natural informations to input. shop it. and treat the fiscal and accounting informations. The direction will open up the gross rhythm inside the system. The gross entry will hold bills. gross revenues orders. cost of goods sold. history receivable. hard currency payment. fees earned. unearned gross. rent gross. involvement gross. service gross. and cargo on board transportation and handling. When direction wants to reexamine the general leger. he or she will see all the assets. liabilities and owners’ equity. The director can reexamine and publish out the Income Statement. The Income Statement will hold the operating disbursals and non-operating disbursals along with all of the net incomes for a given period.

The combination of the two information systems will travel manus in manus with one another. A good illustration of the Accounting Information Systems is the Peachtree Accounting Software. This package allows the users to choose the accounting system of pick: Cash footing or Accrual Basis. Afterwards he/she can non alter the method. Riordan Manufacturing will take the accrual footing since ; it recognizes the houses recognize gross when earned. even when they are incurred. The package is excellence in bring forthing the Income Statement. The user will come in in all the necessary information when it comes to histories. clients. and so forth on in order to hold right information without holding the company waste money. The Enterprise Resource Planning ( ERP ) used by Riordan Manufacturing is Visibility. cyberspace to “support optimisation of operational direction schemes. The ERP package solution consists of incorporate faculties that enable effectual direction of client relationships. quotation marks. undertakings. costs. stuff and resource planning.

The merchandise technology and fabrication. concern public presentation. finance and planetary issues. where supply concatenation coaction ( “Visitability. net “ . 2015 ) ” is cardinal to Riordin Manufacturing success. The systems are different. but they are entwining into Enterprise-Wide Accounting Systems. The gross rhythm gives Riordan Manufacturing a good base point on growing in the Income Statement on all there plastics gross revenues around the universe. . For a company to bring forth the fiscal studies and fiscal statements that are needed for direction to analyze gain/loss and do hereafter concern determinations. the accounting information must all be input and processed.

We will get down with the diary entries and so the accommodations to the entries to demo things like the accrual and hard currency out from the histories collectible and receivable sections. From here we can see the sums in the general leger histories. since newer input systems link the diary entries to the G/L codes we will non necessitate to code the minutess the inputs are already set. So now we can bring forth repots to see how the alterations over the period affected each history. From here we can bring forth our test balances for the period and do any other accommodations necessary. After this we will so bring forth our fiscal statements. like the Balance sheet an income statement that we see in the Riordan Manufacturing.

Mentions

Thomason. K. ( n. d. ) . What are the Five Accounting Cycles. Retrieved February 1st. 2015. from eHow: hypertext transfer protocol: //www. ehow. com/info_8178628_five-accounting-cycles. hypertext markup language Visitability. cyberspace. ( 2015 ) . Retrieved from hypertext transfer protocol: //www. visibleness. com/enterprise_resource_planning. html Bagranoff. N. . Simkin. M. G. . & A ; Strand. C. ( 2008 ) . Core Concepts of Accounting Information Systems [ University of Phoenix Custom Edition eBook ] . Newyork. New york: Wiley. Retrieved from University of Phoenix. ACC/340 Accounting Information Systems web site.