@knicks92 and Martin
I wouldn't go so far as to say memorize the transactions cycle but be familiar with what goes together.
First, transaction cycles or operating cycles is the term used by the auditor when he is cycling through the transactions to determine who handles what, and to determine whether the functions are handled appropriately. For instance who is authorizing transactions, who is recording transactions, who has custody, and finally are these transactions being compared (reconciled). (ARCC)
Revenue cycle deals with making money. In order to make money you have to sell something. So you start from the beginning of that cycle and work your way through to the end of it.
Sales clerk – accepts the customer order
Credit manager – approves the customer order
Warehouse house clerk – holds the goods or separate out the goods (inventory)
Shipping clerk – ships the goods to the customer
Billing clerk – prepares the sales invoice
Receivable clerk – post the sale to the customer's account
and on and on and on………
Each cycle basically works the same way. I believe as you work through the mc questions, you will get a better understanding of these cycles.
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