What Event Initiates a Transaction in the Sales and Collection

question 135

Multiple Choice

What event initiates a transaction in the sales and collection cycle?

• A) receipt of cash
• B) delivery of product to a customer
• C) identification of a new customer
• D) customer request for goods or services

---

Definitions:

Residual Income

The net income an investment or business venture generates above the minimum rate of return.

Minimum Required Rate

The lowest return rate that an investor or project manager would accept for an investment.

Residual Income

Income that remains after all costs and expenses, including minimum required return on investment, have been subtracted.

Operating Assets

Long-term assets used in the operations of a business, including property, plant, and equipment, that generate income.