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)Money banked by business.
D)Order received from customer.

Question

Quizplus · Accepted Answer

Under the accrual accounting approach, income is recognized at the point when the goods are delivered to and accepted by the customer, regardless of whether the sale is made on credit or cash. This is because the revenue is earned at the point when the goods are sold, and not when the money is actually received from the customer. Therefore, the correct choice would be A - Goods delivered to and accepted by customer.

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