The sales and collection cycle applies to businesses that transfer goods to customers or provides services to businesses.

Question

Quizplus · Accepted Answer

The sales and collection cycle is a key component of the accounting cycle for businesses that sell goods or services to customers. It involves the process of making sales, collecting payments from customers, and recording those transactions in the company's accounts. This cycle is essential for tracking revenue, managing accounts receivable, and maintaining sound financial records for the business.

The Sales and Collection Cycle Applies to Businesses That Transfer