Question

John Pablo works in the accounting department of a multinational manufacturing company. His job includes updating accounts receivable based on sales orders and remittance advices. His responsibilities are part of the company's

Answer 1

Answer:

The options are given below:

A. revenue cycle.

B. expenditure cycle.

C. financing cycle.

D. production cycle.

The correct option is A

Explanation:

The revenue cycle is a term that is used in accounting and business which describes the journey pathway a product or service will take from when it is produced to when it is sold.

The revenue cycle starts when an organization delivers a product or provides a service, and ends when the customer makes payment for the product or service.

In the scenario above, we can see that John Pablo's responsibilities are part of the company's revenue cycle because updates accounts receivable based on sales orders and remittances, and sales of products are a part of the revenue cycle of a business organization.