Question

Sales revenue

may be recorded before cash is collected.
will always equal cash collections in a month.
only results from credit sales.
is only recorded after cash is collected.

Answer 1

may be recorded before cash is collected.

Step-by-step explanation:

Sales revenue "may be recorded before cash is collected."

This is according to Accrual accounting, which unlike the cash model that requires payments to be made before sales revenue is recorded.

In the Accrual accounting model, sales revenue recording is not based on cash collection before it is recorded. Here, the revenue is recorded in as much the transferred goods are made and collection of payment is determined or expected.