In which transaction cycle would information for initiating back orders for out of stock goods be most likely to pass between internal and external accounting information systems?
A)the revenue cycle
B)the expenditure cycle
C)the human resources / payroll cycle
D)the financing cycle

Question

Quizplus · Accepted Answer

The revenue cycle involves the process of selling goods or services and collecting payment for those sales. When goods are out of stock, information about back orders, which are requests from customers to purchase goods that are not currently in stock, would most likely be processed within this cycle. This involves communication between the company's internal accounting information system and external entities, such as customers or suppliers, to manage and fulfill these back orders.

In Which Transaction Cycle Would Information for Initiating Back Orders