Final answer:
Companies typically recognize sales revenue when goods are shipped (c), as this marks the transfer of risks and rewards to the buyer. Total revenue is calculated by multiplying the product price by the quantity sold and forms part of a company's income from sales.
Step-by-step explanation:
The question pertains to the recognition of sales revenue by companies. In accordance with the generally accepted accounting principles (GAAP), most companies recognize sales revenue when goods are shipped (c). This is because the shipment of goods generally signifies that the risks and rewards of ownership have been transferred to the buyer, which is a critical point in revenue recognition.
The calculation of total revenue is a separate concept and is determined by multiplying the price of the product by the quantity sold, Total Revenue = Price x Quantity. These two concepts are linked as sales revenue contributes to the total revenue of a company, which reflects the overall income a firm generates from selling its products and services.