Asked by Justin Brady on May 09, 2024
Verified
All sales regardless of whether they are in the form of cash or credit should be recognized on financial statements.
Financial Statements
Financial statements are formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.
Sales
The total revenue generated from goods or services sold by a company within a specific period.
- Recognize the implications of different types of sales (cash or credit) on financial statements.
Verified Answer
AV
Andrea VillaMay 15, 2024
Final Answer :
True
Explanation :
All sales, whether they are in the form of cash or credit, are recognized on financial statements as revenue. This is in accordance with the accrual accounting method, where revenue is recognized when it is earned rather than when cash is received.
Learning Objectives
- Recognize the implications of different types of sales (cash or credit) on financial statements.