In Which Transaction Cycle Would Customer Sales Transaction Information Be

question 21

Multiple Choice

In which transaction cycle would customer sales transaction information be most likely to pass between internal and external accounting information systems?

• A)the revenue cycle
• B)the expenditure cycle
• C)the human resources / payroll cycle
• D)the financing cycle

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Definitions:

Negotiable Instruments

Financial instruments that guarantee the payment of a specified amount of money, either on demand or at a set time, with the feature of being transferable from one party to another.

Certificates of Deposit

A financial product typically offered by banks that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period.

Drafts

Preliminary versions of documents or plans that are subject to revision or editing before the final version is produced.

Negotiability

The ability of a document or instrument to be legally and freely transferred from one party to another.