Question

In which business cycle are goods shipped to a customer? a)Expenditure cycle b)Revenue cycle c)Payroll cycle d)Production cycle

Answer 1

Answer: Revenue cycle

Explanation: Revenue cycle can be defined as the grouping of transactions involving from sale of goods to customers to the receipt of payments from such customers. It is a type of business cycle and it ends when the goods are shipped to the customer and the full payment is received.

Revenue cycle is used to analyze the ability and time taken by the company to recover amount from its debtors.