In the revenue and collection cycle, the order of the activities in the cycle is best illustrated by:
A)delivering goods, billing customer, granting credit, and performing collection activities.
B)customer ordering, delivering goods, granting credit, and billing customers.
C)processing customer orders, granting credit, delivering goods, and billing customers.
D)granting credit, billing customers, delivering goods, and processing cash receipts.

Question

Quizplus · Accepted Answer

The revenue and collection cycle begins with processing customer orders, followed by granting credit to eligible customers, delivering goods or services to the customer, and finally billing the customer for the goods or services received. Once the billing is done, the cycle ends with the processing of cash receipts from the customer.

In the Revenue and Collection Cycle, the Order of the Activities