Question

Sales Revenue?

A. May be recorded before cash is collected
B. Will always equal cash collections in a month
C. Only results from credit sales
D. Is only recorded after cash is collected

Answer 1

Sales revenue may be recorded before cash is collected. It represents the revenue earned from both credit and cash sales.

Step-by-step explanation:

Total revenue is the income the firm generates from selling its products. We calculate it by multiplying the price of the product times the quantity of output sold:
Total Revenue = Price x Quantity

Sales revenue may be recorded before cash is collected. It represents the revenue earned from both credit and cash sales. Credit sales refer to transactions where customers make purchases on credit and pay at a later date. On the other hand, cash sales are transactions where customers make immediate payment using cash or other forms of payment. Therefore, option A is the correct answer choice.