Which of the following is the amount of revenue reported on the income statement of a retail company?

Question

Quizplus · Accepted Answer

The amount of revenue reported on the income statement of a retail company includes both cash and credit sales for the period. This is because revenue is recognized when goods are sold, regardless of whether payment is received immediately in cash or at a later date through credit. Option A only includes the cash collected, while Option C only includes cash sales and collections, both of which do not fully capture the company's revenue for the period. Option D is irrelevant as stockholders' investments are not included in revenue.

Which of the Following Is the Amount of Revenue Reported