Company A sells goods to its customers on credit; Company B sells services to its customers for cash. Which of the following statements is most true?

Question

Quizplus · Accepted Answer

The fundamental role and purpose of the sales/collection process is to generate revenue by selling goods or services and collecting payment from customers. Both companies, A and B, have a sales/collection process, but the mechanics and timing of the process may differ due to selling goods on credit vs. selling services for cash. However, the essential purpose of the process is the same. Therefore, option A is the most accurate statement.

Company a Sells Goods to Its Customers on Credit; Company