SummaryAn accounting system consists of business processes which can be described as interrelated sets of structured activities performed by an entity to create value. The execution of business processes involves a logical time sequence and may require employees, external parties, resources, data, documents, and machines. Business processes are triggered by some economic event and have clearly defined starting and ending points. To learn about business processes various models have been developed to describe them. The Transaction Cycle model is one way to view basic business processes. The purpose of The AIS Transaction Cycles Game is to provide drill and practice or review of the elements that comprise the five typical transaction cycles identified as: revenue, expenditure, production, human resources/payroll, and financing. The game is based on the game called Connect 4. Show
Learning GoalsAs a result of studying course materials and completing this activity, students should be able to: Context for UseThe specific cycles within the Transaction Cycle model tend to differ somewhat among the accounting information systems' textbook authors. While the components of the Revenue, Expenditure, and Production Cycles are fairly standard, the remaining cycles can differ substantially. The AIS Transaction Cycle Game is primarily based on the model described by Romney & Steinbart, in the 12th edition of their Accounting Information Systems textbook.
Description and Teaching Materials
Teaching Notes and TipsThe AIS Transaction Cycles Game is intended for reinforcing concepts previously taught. For homework prior to the class during with the game will be played, students should be required to become familiar with the elements of the various business processes that comprise the Transaction Cycle model. The game can be used for drill and practice or review purposes in class with the instructor serving as the moderator. Additionally, the game could be posted online through a course learning system for students to download and play in pairs during class time. While any game board slot can be chosen at any time, in order to actually simulate Connect 4, questions should be chosen from the bottom of the game board (row one) first. For example, assume the yellow team selects cell A1 and answers correctly. The red team can select any additional cell in row 1 as well as cell A2. Note: The components of the Transaction Cycle model while similar are not identical to the classification scheme used to distinguish operating, investing, and financing activities for the Statement of Cash Flows. AssessmentThe game serves as a form of informal formative assessment. Summative assessment will be required via some other means. References and ResourcesRomeny, Marshall B., & Steinbart, Paul John. (2012). Accounting Information Systems. 12th Edition. Upper Saddle River, NJ: Pearson Education. Which of the following cycle involves interaction between a company and its customers?revenue cycle[Correct. The revenue cycle involves interactions between an organization and its customers, such as shipping them goods.
What are the types of transaction cycles?similar types of transactions are grouped together into three transaction cycles:. the expenditure cycle,. the conversion cycle, and.. the revenue cycle.. What are the 3 transaction cycles?Three transaction cycles process most of the firm's economic activity: the expenditure cycle, the conversion cycle, and the revenue cycle. These cycles exist in all types of businesses— both profit-seeking and not-for-profit.
Which cycle includes the set of transaction involving an interaction between an organization and its suppliers?Answer and Explanation: The correct answer b. expenditure cycle.
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