The two primary classes of transactions in the sales and collection cycle are
A) sales and sales discounts.
B) sales and cash receipts.
C) sales and sales returns.
D) sales and accounts receivable.

Question

Quizplus · Accepted Answer

The two primary classes of transactions in the sales and collection cycle are sales and cash receipts. Sales represent the revenue earned by the company from the sale of goods or services, while cash receipts represent the collection of cash from customers against the sales made. Other transactions such as sales returns, sales discounts, and accounts receivable are secondary to the primary transactions of sales and cash receipts.

The Two Primary Classes of Transactions in the Sales and Collection