The sales and collection cycle applies to businesses that sell goods to customers or provide services to customers.

Question

Quizplus · Accepted Answer

The sales and collection cycle is a critical accounting cycle for businesses that sell goods or services to customers. This cycle involves the sale of goods or services, the invoicing or billing process, and the collection of payments from customers. It is important for businesses to manage this cycle effectively to ensure timely payments, maintain accurate records, and manage cash flow.

The Sales and Collection Cycle Applies to Businesses That Sell