Q: Classify each of the following items as belonging in the revenue, expenditure, human
resources/payroll, production, or financing cycle.
a. Purchase raw materials – Expenditure cycle
b. Payoff mortgage on factory – Financing cycle
c. Hire a new assistant controller – Human resources/payroll cycle
d. Establish a $10,000 credit limit for customer XYZ company – Revenue cycle
e. Pay for raw materials – Expenditure cycle
f. Disburse payroll checks to factory workers – Human resources/payroll cycle
g. Record goods received from vendor – Expenditure cycle
h. Update the allowance for uncollectible accounts – Revenue cycle
i. Decide how many units to make next month – Production cycle
j. Complete picking ticket for goods ordered by a customer – Revenue cycle
