1) During the current year, a retail store (BMI), sold $1,250,000 of goods to its customers. Cash sales were $500,000 and credit sales $750,000. BMI collected $500,000 of the credit sales during the year. What amount of revenue should BMI recognize for the year?

2) Revenue and gains arise from a company's ordinary activities.

Select one:

True

False

3) Tuition services when universities and colleges provide educational services are considered revenue from

A.

sale of goods.

B.

services.

C.

receipt of interest.

D.

none of the above.

4)

There must be a receipt of cash in order for a company to recognize revenue.

Select one:

True

False