Sales revenue is typically significant due to:
A) the overall inherent risk associated with revenue.
B) the volume of transactions that flow through the account.
C) its size.
D) all of the above.

Question

Quizplus · Accepted Answer

All three options are valid reasons why sales revenue is typically significant. The inherent risk associated with revenue is high because it is a critical component for a company to generate profits and sustain operations. Additionally, sales revenue involves a high volume of transactions due to the nature of sales activities, such as cash or credit sales. Lastly, sales revenue is typically one of the largest sources of income for a company, making it a significant account on a financial statement. Therefore, all three options are correct, and the best choice is D.

Sales Revenue Is Typically Significant Due To