Generally, When Is the Earliest Point in the Sales and Collection

question 83

Multiple Choice

Generally, when is the earliest point in the sales and collection cycle in which revenue can be recognized?

• A)When the sale is approved
• B)When the credit approval process is finalized
• C)When the cash is collected
• D)When the goods have been shipped

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Definitions:

Principal

The original amount of money loaned or invested, excluding any interest or profits.

Tort Liability

Legal responsibility arising from civil wrongs or injuries caused by one's actions or inactions to another person, excluding breaches of contract.

Misrepresentations

False statements or actions made to deceive or mislead.

Rescinding

The action of revoking, canceling, or repealing a contract, agreement, or law.