A manufacturer produces and sells a standard product on credit, which is transported to customers using the

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A manufacturer produces and sells a standard product on credit, which is transported to customers using the manufacturer’s delivery vans. Managers believe there are four points in the production/selling cycle at which revenue might be recognised:

When the goods are produced;
When an order is received from a customer;
When the goods are passed to, and accepted by, the customer; or
When the cash is received from the customer.

At which of these points do you think the manufacturer should recognise revenue?

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Accounting And Finance For Non Specialists

ISBN: 9781292334691

12th Edition

Authors: Peter Atrill, Eddie McLaney

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Question Posted: Dec 24, 2023 05:40 AM

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A manufacturer produces and sells a standard product on credit, which is transported to customers using the

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The indicators listed above point towards the third on the list ...View the full answer

Accounting And Finance For Non Specialists

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