Which entity is likely to be part of both the payroll cycle and the expenditure cycle?
A) Receive Goods
B) Customer
C) Disburse Cash
D) Inventory

Question

Quizplus · Accepted Answer

Disbursing cash is a part of both the payroll cycle and the expenditure cycle. In the payroll cycle, cash is disbursed as salary payments to employees whereas in the expenditure cycle, cash is disbursed to pay for goods and services acquired by the company. The other options listed are not typically associated with both cycles.  Receive goods is only associated with the expenditure cycle, while inventory is typically associated with the acquisition and payment for goods in the expenditure cycle. A customer is only part of the revenue cycle, not the payroll or expenditure cycles.

Which Entity Is Likely to Be Part of Both the Payroll