A manufacturing business sells goods on credit. Below are four points in the production/ selling cycle at

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A manufacturing business sells goods on credit. Below are four points in the production/

selling cycle at which revenue might be recognised:

1. when the goods are produced;

2. when an order is received from the customer;

3. when the goods are delivered to, and accepted by, the customer; and 4. when the cash is received from the customer.

At what point do you think the business should recognise revenue?

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