Multiple Choice
On December 31, 2012, Bosco Corporation signed a one-year contract to provide services to Cosco Company for $120,000. Cosco will pay for the services on January 1, 2013. Using the accrual basis of accounting, when should Bosco Corporation recognize revenue?
A) On January 1, 2013, when the cash is received from Cosco.
B) On December 31, 2013 (the end of the next year) , when all services have been provided.
C) Equally throughout the year 2013, as the revenue is earned.
D) On December 31, 2012, when the contract is signed.
Correct Answer:
Verified
Correct Answer:
Verified
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