How to understand operating cycles?

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  • March 4, 2015 at 2:00 am #192470
    Anonymous
    Inactive

    How do you understand the revenue and purchasing operating cycles? I keep having a hard time grasping those. All I can memorize are that operating cycle stuff include sales order, bill of lading, sales invoice, and purchasing cycle stuff includes purchase order and receiving report.

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  • March 4, 2015 at 2:15 am #649617
    s2sylvir
    Member

    I never understood it either… To this day… If you are using Becker, they make it seems so “common sense”, like “well duh, before sales order, we need credit approval” or something.

    But on the exam/MCQ the questions don't ask you that stuff. They ask stuff that Becker does't really teaches about the cycles.

    Sorry, I'm not helpful at all lol :c

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    March 4, 2015 at 2:57 am #649618
    Martin
    Participant

    You need to memorize the right information. You need to memorize who is in charge of the ARCC.

    Authorization

    Recording

    Custody

    Comparison

    Like on sales, if the credit department needs to Authorize a sale then they can not also record the sale. Each item in the ARCC needs to be done by a different individual. Know the ARCC for each member and for each cycle. I get correct about 84% of the questions that deal with Cycles based on what I just explained. I was praying to get a lot of questions on Cycles or Assertions,but i did not.

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    March 4, 2015 at 4:46 am #649619
    leglock
    Participant

    @Martin:

    Is Comparison a new part of the ARC. I learned ARC as the first three you mentioned but it did not include the extra C (comparison)?

    Can you explain what Comparison is?

    March 4, 2015 at 3:31 pm #649620
    Anonymous
    Inactive

    Comparison would be bank reconciliation

    March 4, 2015 at 5:23 pm #649621
    Martin
    Participant

    The comparison part is the bank rec just like Deede mentioned. The person who does the Bank rec C can not do any of the other ARC duties.

    Through God all things can happen!

    “You never fail until you stop trying.”
    ― Albert Einstein
    When I was young, I used to admire intelligent people;as I grow older, I admire kind people.
    “Just keep swimming, just keep swimming.”

    FAR= 72-84
    Audit= 73-82
    BEC= 74-75
    Reg=77

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