A company sells goods on credit valued at £25 000 to a customer. At what point in the sales cycle should this sale be recognized in the accounts?

it can be the three choices starting from B with C and D , could be just one of them or more than one or even the three together, depending on how the accounting cycle going in this company and what kind of goods they dealing with.

C,

When good are already dispatched and out of control of the seller.

Ans is C. for this ques

B

When the goods are ready for dispatch to the customer

I can say both c & D as the revenue recognision plays a major role to record the revenue into the books.
Some companies recognise the revenue as soon as they deliver the goods and some companies recongnise the revenue as soon as they receive money.
The revenue recongnition policy or point of recognision vary from company to company and industry to industry.
project based companies recognise the revenue even prior to bill it to the customer.
When the accounting period ended, we calculate the work completion upto what level and the cost involved upto the level based on that, we recognise the revenue and Dr.
accrued Income.
so we cant confrm and say as soon as invoiced, delivered it can be even prior or after depends on the company policy in line with Accountng standards.

Option b

Ans (c) .
When the goods are sent, accepted and invoiced.

b.
When the goods are ready for dispatch to the customer

Revenue should be recognised based on criteria set by IAS-18 (Revenue Recognition) whiich is detailed below:

 Revenue is recognised when all the following conditions have been satisfied:

(a) The seller has transferred the significant risks and rewards of ownership of the goods to the buyer.(b) The seller does not retain control over the goods or managerial involvement with them to the degree usually associated with ownership.(c) The amount of revenue can be measured reliably.(d) It is probable that the economic benefits associated with the transaction will flow to the seller(e) The costs incurred or to be incurred by the seller in respect of the transaction can be measured reliably.

I hope this will be helpful for others as well.