Business Cycles

Business Cycles

The business cycles measured by the growth rate of gross domestic product and fluctuations in economic activity do not follow a mechanical or predictable pattern. It refers to economy-wide fluctuations in production or economic activity over several months or years.

Revenue Cycle

The Revenue Cycle is the process in businesses to describe the progress in financial of their accounts receivables from the very beginning. The Revenue Cycle process it begins when the product being priced and ready to be sold. It usually done by the accounts receivable (or accounting) department of a company. Today, the revenue cycle usually used in accounting and the company when the account is receivable and full.

Expenditure Cycle

The Expenditure Cycle is a type of process that helps to define what occurs from the point that a business or consumer decides that the purchase of a given goods or service is necessary to the point that the purchase is paid for in full. In the companies the expenditure cycle it begins with the allowing the permission to make a particular purchase.

Conversion Cycle

The Conversion Cycle is a type of process that has a transaction: acquisition of materials, acquisition of labor, transfer of materials, labor and overheads into production, transfer of finished goods to inventory and sale of inventory. In the conversion cycle it involves the three major groups in the conversion cycle: inventory, payroll and cost accounting. This business cycle is to keep records of inventory levels in raw materials and finished goods and also this cycle have a payroll system that usually used in accounting and also in the companies. This business cycle is very important in the accounting, companies and also businesses by recording the labor transactions.

Treasury Cycle

The Treasury Cycle is the timing and frequency of the various maturities or treasury instruments; transactions include those related to financing the operations of the business ( e.g. issuance of capital stock or long- term debt). In this business cycle it shows the transactions related in financing and other operations in the business. It is the frequency of the transactions in financing and operations in the company and also in other business. This business cycle is very important in the business especially in the financing and other operations in the company.

POSTED BY: ALYSSA MARIE P. GABI