Interpreting the Revenue Principle – Indicate the most likely time you expect sales revenue to be recorded for each of the listed transactions.
|
Transaction |
Point A |
Point B |
|
a. Sale of inventory to a business customer on open account |
Shipment |
Collection of account |
|
b. Computer sold by mail order company on a credit card |
Shipment |
Delivery |
|
c. Airline tickets sold by an airline on a credit card |
Point of sale |
Completion of flight |