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Posted: July 13th, 2022
11. Transaction Cycle Relationship Refer to Figure 2-1, which provides a generic look at relationships between transaction cycles. Modify this figure to reflect the transaction cycles you might find at a dentist’soffice.
12. System Documentation—Expenditure following describes the expenditure cycle procedures for a hypothetical company.The inventory control clerk examines the inventory records for items that must be replenishedand prepares a two-part purchase requisition.Copy 1 of the requisition is sent to the purchasing department and Copy 2 is filed.Upon receipt of the requisition, the purchasing clerk selects a supplier from the validvendor file (reference file) and prepares three-part purchase order.
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Copy 1 is sent to the supplier, Copy 2 is sent to the accounts payable department where it is filed temporarily,and Copy 3 is filed in the purchases department. A few days after the supplier ships the order, the goods arrive at the receiving department.They are inspected, and the receiving clerk prepares a three-part receiving report describing the number and quality of the itemsreceived. Copy 1 of the receiving report accompanies the goods to the warehouse, where theyare secured and the receiving report is filed.Copy 2 is sent to inventory control, where the clerk posts it to the inventory records and filesthe document. Copy 3 is sent to the accounts payable department, where it is filed with thepurchase order.A day or two later, the accounts payable(AP) clerk receives the supplier’s invoice (bill)for the items shipped. The clerk pulls the purchaseorder and receiving report from the temporaryfile and compares the quantity ordered,quantity received, and the price charged. Afterreconciling the three documents, the clerk entersthe purchase in the purchases journal and poststhe amount owed to the accounts payable subsidiaryaccount.On the payment due date, the AP clerkposts to the AP subsidiary account to removethe liability and prepares a voucher authorizingpayment to the vendor. The voucheris then sent to the cash disbursements clerk.Upon receipt of the voucher, the cash disbursementsclerk prepares a check and sendsit to the supplier. The clerk records the checkin the check register and files a copy of thecheck in the department filing cabinet.Required:Prepare a data flow diagram and a documentflowchart of the expenditure cycle procedurespreviously described.Get
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