The internal control objectives of the revenue cycle include all of the following except

A. Revenue cycle transactions are properly executed.

B. Appropriate goods are ordered so that sales can be made.

C. Transactions relating to revenue are properly recorded.

D. Custody over assets resulting from the revenue cycle is properly maintained.

Question

Business

Leyla

7 October, 12:21

The internal control objectives of the revenue cycle include all of the following except

A. Revenue cycle transactions are properly executed.

B. Appropriate goods are ordered so that sales can be made.

C. Transactions relating to revenue are properly recorded.

D. Custody over assets resulting from the revenue cycle is properly maintained.

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Answers (1)

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Mario Weber · Answer 1

B. Appropriate goods are ordered so that sales can be made.

Explanation:

The revenue cycle commences once a product or service is delivered or rendered and is completed once full payment is received from the customer.

Options A, C and D relate to the revenue cycle while Option B relates to the production cycle.