Sales Revenues Are Usually Considered Recognized When

question 120

Multiple Choice

Sales revenues are usually considered recognized when

• A)cash is received from credit sales.
• B)an order is received.
• C)goods have been transferred from the seller to the buyer.
• D)adjusting entries are made.

---

Definitions:

Operating Expenses

The costs of running your business, including your rent, utilities, administration, marketing/advertising, employee salaries, and so on.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Short-Term Portion of Long-Term Debt

The part of a company's long-term debt that is due to be paid within the following twelve months.

5-Year Bank Loan

A financial agreement where a bank lends money to a borrower, to be repaid with interest over a period of five years.