Answer (B) is correct . The revenue cycle embraces the activities pertaining to exchanges with customers and the collection in cash of the amounts paid for the goods or services provided. Ordering appropriate goods, which is an objective of the purchases-payables cycle, is only indirectly related to the revenue cycle.
Answer (A) is incorrect because An internal control objective of the revenue cycle is that revenue-cycle transactions be properly executed.
Answer (C) is incorrect because An internal control objective of the revenue cycle is that transactions relating to revenue be properly recorded.
Answer (D) is incorrect because An internal control objective of the revenue cycle is that custody over assets resulting from the revenue cycle be properly maintained.
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