Asked by Alison Piscitelli on Jun 28, 2024

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Sales revenues are earned during the period cash is collected from the buyer.

Sales Revenues

The total income a business receives from selling goods or services before any expenses are deducted.

Cash Collected

The total amount of money received by a company, typically over a specific period, including revenues from sales, investments, and financing activities.

Period

A length of time during which a series of events or an action takes place or is completed.

  • Comprehend the revenue recognition principle and its application to merchandising entities.
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Leslie NievesJul 03, 2024
Final Answer :
False
Explanation :
Sales revenues are recognized at the time of sale or delivery of goods or services, regardless of when cash is collected from the buyer. Cash collection may occur before or after the sale, but it does not affect the recognition of revenue.