Question

Please write 4 paragraphs with each paragraph containing 50-60 words.

2. How does accounts receivable differ from the revenue cycle?

Answer 1

Accounts receivable differ from the revenue cycle in many ways-

Accounts receivable are usually known as the invoices that the businesses had already issued to their customers but they are not yet paid.
Revenue cycle are usually known as the term which describes journey of the products from the beginning to the sale. When the customer who has made the purchase pays the full amount of the product then it is called revenue cycle.

Accounts receivable is describe as the amount of money which is owned to the business by the customer, insurance or any other third party for the product or the service provided by the business.
Revenue cycle is described as the effort which is made in order to lower down the amount in the accounts receivable. It is done by managing production and the payment cycle.

Accounts receivable arises when the service is been given to the customer and it is also recorded but the payment has not been done yet by the customer.
Revenue cycle is when the provider completes the payment for the service that he has already taken in the past.

An example of accounts receivable is when a Clothing company generates the bill after the client has received the products. The company maintains and records the account receivable for all of the unpaid invoices that has been provided.
-When the clients pay the bills then it is known as revenue cycle.