For entities involved in the business of selling goods and services which of the following function(s) will apply?

Question

Quizplus · Accepted Answer

Entities involved in the business of selling goods and services will typically engage in sales, cash receipts, and sales adjustments. Sales involve recording the revenue from the sale of goods or services. Cash receipts involve the receipt of cash from customers for those sales. Sales adjustments may include returns and allowances, discounts, and other adjustments to sales revenue. Therefore, the best choice is D, which includes all three functions.

For Entities Involved in the Business of Selling Goods and Services