There are five classes of transactions in the sales and collection cycle. Which is NOT one of them?
A) Cash receipts
B) Sales on account
C) Depreciation allowance
D) Cash sales

Question

Quizplus · Accepted Answer

The five classes of transactions in the sales and collection cycle are sales on account, cash sales, sales returns and allowances, write-offs of uncollectible accounts, and cash receipts. Depreciation allowance is not part of this cycle, as it is a noncash transaction related to the fixed asset and depreciation cycle.

There Are Five Classes of Transactions in the Sales and Collection