Chapter 11, Problem 1RQ

What is the billing/accounts receivable/cash receipts (B/AR/CR) process?

Summary Introduction

To explain: The billing/accounts receivable/cash receipts (B/AR/CR) process.

B/AR/CR process: It is an accounting process with an interacting structure of different process supporting the decision-making activities of the financial managers.

Explanation of Solution

The billing/accounts receivable/cash receipts (B/AR/CR) process:

It is an interrelating structure of different elements including the people, control plans to handle the following activities. They are:

• The repeating work activities of the credit department, accounts receivable, and the cashier.
• Supports the decision-making of the financial managers.
• It assists in preparing the internal and external reports.

The B/AR/CR process finishes the order-to-cash process by:

• Billing customers.
• Management of customer accounts.
• Securing and recording the payment of goods or services sold.