The AIS Transaction Cycles Game
An accounting system consists of business processes which can be described as interrelated sets of structured activities performed by an entity to create value. The execution of business processes involves a logical time sequence and may require employees, external parties, resources, data, documents, and machines. Business processes are triggered by some economic event and have clearly defined starting and ending points. To learn about business processes various models have been developed to describe them. The Transaction Cycle model is one way to view basic business processes. The purpose of The AIS Transaction Cycles Game is to provide drill and practice or review of the elements that comprise the five typical transaction cycles identified as: revenue, expenditure, production, human resources/payroll, and financing. The game is based on the game called Connect 4.
Determine which business process elements are associated with the revenue, expenditure, production, human resources/payroll, and financing/investing cycles.
Context for Use
- Romney & Steinbart's version of the Transaction Cycle model along with those presented by of the other authors tends to ignore investing activities. As a result the Financing Cycle in the AIS Transaction Cycles Game has been renamed Financing/Investing Cycle in order to include investing activities, such as fixed asset and investment management.
- In other versions of the model, the Production Cycle is sometimes called the Conversion Cycle. The terms are synonymous in this game.
- The Payroll Cycle is sometimes an independent cycle or included with the Human Resources Cycle. In The AIS Transaction Cycles Game, payroll has been included in the Human Resources Cycle.
Description and Teaching Materials
- The AIS Transaction Cycles Game (PowerPoint 2007 (.pptx) 523kB Apr2 12) is an interactive PowerPoint presentation modeled after Connect 4. The game requires two players or teams, red and yellow. The 7 x 7 game board contains 49 circular slots or cells into which game chips are dropped. Each cell is tied to a transaction cycle element. When a team selects the correct transaction cycle to which the element belongs, the team gets to drop its chips (yellow or red), into its position on the game board. Should an incorrect answer be given, the cell remains unclaimed, and play progresses to the other team. The first player or team to align four chips consecutively, either horizontally, vertically, or diagonally, wins the game.
- User instructions for the Instructor (Microsoft Word 2007 (.docx) 350kB Apr2 12). This document contains detailed instructions for playing the game, modifying content or using the blank template to create a new game.
- Blank Game Template (PowerPoint 2007 (.pptx) 231kB Apr2 12). This template can be used to create a game on any topic in for any discipline.
Teaching Notes and Tips
While any game board slot can be chosen at any time, in order to actually simulate Connect 4, questions should be chosen from the bottom of the game board (row one) first. For example, assume the yellow team selects cell A1 and answers correctly. The red team can select any additional cell in row 1 as well as cell A2.
Note: The components of the Transaction Cycle model while similar are not identical to the classification scheme used to distinguish operating, investing, and financing activities for the Statement of Cash Flows.