What is the major difference between the revenue and the expenditure cycle?
A)The revenue cycle includes marketing activities; the expenditure cycle does not.
B)In the revenue cycle,cash is received; in the expenditure cycle cash is paid out.
C)The expenditure cycle includes paying employees.
D)The revenue cycle includes the activity of obtaining funds from investors.

Question

Quizplus · Accepted Answer

The major difference between the revenue and the expenditure cycle is that in the revenue cycle, cash is received whereas in the expenditure cycle, cash is paid out. The revenue cycle involves the processes of making sales, invoicing, and receiving payments from customers, whereas the expenditure cycle involves the processes of purchasing goods and services, recording them in the accounting system, and paying suppliers and other vendors.

What Is the Major Difference Between the Revenue and the Expenditure