What are the classes of transactions in the revenue cycle included for a merchandising company?
A)Credit sales
B)Cash receipts
C)Sale adjustments
D)Gross sales

Question

Quizplus · Accepted Answer

A merchandising company would typically have credit sales (A) as part of their revenue cycle, as well as cash receipts (B) from customers. In addition, there may be sale adjustments (C) such as returns or discounts that affect the total revenue recognized. Gross sales (D) would not typically be considered a class of transaction in the revenue cycle, as it is simply the total amount of sales before any adjustments or deductions are made.

What Are the Classes of Transactions in the Revenue Cycle