Under the accrual accounting approach, at which stage of the operating cycle would income be recognised by a timber yard from the sale of timber on credit?
A) goods delivered to and accepted by customer
B) money received from customer
C) order received from customer
D) money banked by business

Question

Quizplus · Accepted Answer

Under the accrual accounting approach, income is recognized when goods or services are delivered to and accepted by the customer, regardless of when payment is actually received. In the case of a timber yard selling timber on credit, income would be recognized when the goods are delivered to and accepted by the customer. Option A is the only choice that accurately reflects this stage of the operating cycle.

Under the Accrual Accounting Approach, at Which Stage of the Operating