Full cylce of accounting refers to set of transactions associated with specific business activity , some of the mportant transaction are below.
Sales. A company buys goods, stores them, processes customer orders, picks items from stock, sells them on credit, and collects payment from customers. These activities represent the full cycle of activities for selling to customers.
Purchasing. Someone submits a requisition for goods, the purchasing department issues a purchase order, the receiving department receives the goods, and the accounts payable staff processes payment to the supplier. These activities represent the full cycle of activities for acquiring goods.
Payroll. Employees submit their time cards or time sheets to the payroll staff, which reviews them for errors, obtains supervisor approvals, aggregates the information into gross pay, incorporates all required tax and other deductions to arrive at net pay, and issues payments to employees. These activities represent the full cycle of activities for paying employees.
