Sales Cycle Principle in Accounting Quiz

Recognition of revenue and expenses when they occur, not when cash is received or paid

It ensures that financial statements accurately reflect the financial performance of a company

Managing the time between paying suppliers and receiving cash from customers

<p>It may result in differences between the timing of recognizing revenue and expenses and the actual cash inflows and outflows</p> Signup and view all the answers

<p>Reduces the need for external financing and improves cash flow</p> Signup and view all the answers

<p>Optimizing the use of working capital to generate maximum return</p> Signup and view all the answers