If a company produced the product in period $1,$ sold and delivered it to the buyer in period $2,$ extended the credit to the buyer in period $3,$ was paid by the buyer in period $4,$ and paid taxes on the sale in period $5,$ then:

Question $3$Answer

a$.$

Its profit is recognized in period $5$

b$.$

Its inventories decreased in period $3$

c$.$

It recognized its cash expenditure on production in period $4$

d$.$

Its revenues increased in period $2$

e$.$

Its cost of goods sold was recognized in period $1$