Chapter 13 The Expenditure Cycle: Purchasing to Cash Disbursements
expenditure cycle – A recurring set of business activities and related data processing
operations associated with the purchase of and payment for goods and services.
Context Diagram of the Expenditure Cycle
Basic Expenditure Cycle Activities
1. Ordering materials, supplies, and services
2. Receiving materials, supplies, and services
3. Approving supplier invoices
4. Cash disbursements
General issues throughout entire expenditure cycle
THREAT
CONTROLS
