8. Delivery of goods to customers 7. Receipt of orders after completing production 6. Completion of production 9. Receipt of cash 1. Devising an idea 5. 2. Making purchases (e.g: of inventories) 3. Receipt of orders before commencing production 4. Commencing production Progressively throughout production The operating cycle (Source: AARF, ED 51B) Using the operating cycle provided above, identify in each case at what point in the operating cycle (1-9) the revenue should be recognised. Provide justification for your choice. (a) A soft-drink manufacturer (b) A legal firm (c) A theatre that sells season tickets to musical productions (d) A gold-mining company (e) A company which sells houses on an instalment plan: term of payment extending to 20 years: buyers assume all risks of ownership: buyers pay a deposit of 25% of the sales price (f) A contractor building a bridge for the government