The transaction processing system (TPS) is an activity consisting of systems called the expenditure cycle, the conversion cycle and the revenue cycle. While each cycle performs different specific tasks and supports different objectives, they share common characteristics. For example, all three TPS cycles capture the financial transaction, record the effects of transactions accounting record and provide information about transactions to users in support of their day-to-day activities. a. Elaborate the cash flow through the transaction cycle by discussing the relevant subsystems and any possibilities of time lags that may occur b. Explain the relationship between the balance in the account payable general ledger control account and accounts payable subsidiary ledger.
The transaction processing system (TPS) is an activity consisting of systems called the
expenditure cycle, the conversion cycle and the revenue cycle. While each cycle performs
different specific tasks and supports different objectives, they share common characteristics.
For example, all three TPS cycles capture the financial transaction, record the effects of
transactions accounting record and provide information about transactions to users in support
of their day-to-day activities.
a. Elaborate the
b. Explain the relationship between the balance in the account payable general ledger control account and accounts payable subsidiary ledger.
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