Question

One of the reasons for recognizing revenue at the time of sale is that the risk of loss due to price decline or destruction of the goods is passed to the buyer.A. True B. False

Answer 1

Answer: True

Step-by-step explanation:

Sales refer to transactions which involves the provision of goods and services to the consumer.

Revenue is recognized at the time of sale so the risk of loss due to price decline or destruction of the goods is passed to the buyer.

Therefore, the correct option is true.