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9. Receipt of cash 1. Devising an idea 8. Delivery of goods to customers 2. Making purchases (e.g. of Inventories) 7. Receipt of orders after completing production 3. Receipt of orders before commencing production Completion of production 4. Commencing production 5. Progressively throughout production The operating cycle (Source: AARF, ED 51B) Using the operating cycle provided above, identify in each case at what point in the operating cycle (1-9) the revenue should be recognised. Provide justification for your choice. (a) A soft-drink manufacturer (b) A legal firm A theatre that sells season tickets to musical productions (d) A gold-mining company () A company which sells houses on an instalment plan: term of payment extending to 20 years: buyers assume all risks of ownership: buyers pay a deposit of 25% pf the sales price (f) A contractor building a bridge for the government