Question
Sales do not equal cash inflow because __________.
sales are on the cash basis of accounting
companies do not necessarily collect cash at the time of sale under the accrual basis of accounting
sales include both merchandise and services
cash is sometimes collected at the time of sale
I don't know
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sales are on the cash basis of accounting
companies do not necessarily collect cash at the time of sale under the accrual basis of accounting
sales include both merchandise and services
cash is sometimes collected at the time of sale
I don't know
One attempt
You answered 5 out of 5 correctly. Asking up to 11.
Submit answer
Answers
GPT-4o mini
The correct answer is:
**companies do not necessarily collect cash at the time of sale under the accrual basis of accounting.**
In accrual accounting, sales are recognized when they occur, regardless of when the cash is actually received. This means that sales revenue can be recorded even if payment has not yet been made, which leads to the distinction between sales and cash inflow.
**companies do not necessarily collect cash at the time of sale under the accrual basis of accounting.**
In accrual accounting, sales are recognized when they occur, regardless of when the cash is actually received. This means that sales revenue can be recorded even if payment has not yet been made, which leads to the distinction between sales and cash inflow.