Question: For example, assume that an entity sold goods for $1,600 on May 1, and the customer paid $1,600 for these goods on June 1. Its

For example, assume that an entity sold goods for $1,600 on May 1, and the customer paid $1,600 for these goods on June 1. Its cash inflow on May 1 would be [$0 / $1,600], and its revenue in May would be [$0 / $1,600]. Its cash inflow on June 1 would be [$0 /

$1,600], and its revenue in June would be [$0 / $1,600]. Its balance sheet at the end of May would include this $1,000 as an asset, called A R .

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