A manufacturing business sells goods on credit. Below are four points in the production/ selling cycle at
Question:
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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Related Book For
Accounting And Finance For Non Specialists
ISBN: 9781292135601
10th Edition
Authors: Peter Atrill, Eddie Mclaney
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