Kingman Consulting Uses the Cash Basis of Accounting and a Fiscal

Multiple Choice

Kingman Consulting uses the cash basis of accounting and a fiscal year ending December 31.Beginning on September 1, 2021, Kingman performs services for Renfro International at a rate of $5,000 per month.On February 12, 2022, Renfro pays Kingman $25,000 in full for all services rendered from September 1, 2021 to January 31, 2022.Kingman understated revenues by ________ on its 2021 income statement.

A) $20,000
B) $5,000
C) $25,000
D) $15,000