During the Current Year, First Flex Corporation Sold $1,250,000 in Goods

question 1

Multiple Choice

During the current year, First Flex Corporation sold $1,250,000 in goods that cost $750,000. Cash sales were $500,000 and credit sales $750,000. First Flex collected $500,000 of the credit sales during the year. What amount of revenue should Flex recognize for the year under the revenue recognition principle?

• A) $1,250,000
• B) $ 500,000
• C) $ 750,000
• D) $ 1,000,000

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Definitions:

Reward

A benefit or positive reinforcement given for a desired behavior, encouraging the behavior to occur again.

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An irrational and excessive fear of an object, situation, or activity that causes significant distress or interferes with daily life.

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A large, hairy spider belonging to the family Theraphosidae, known for its formidable appearance.

Rehearsing

The act of practicing or repeating something, such as information or a skill, to improve performance or memorization.