Multiple Choice
On December 31, 2013, a company signed a one-year contract to provide services to a particular customer for $12,000. The customer will pay for the services during January 2014. Using the accrual basis of accounting, when should the company recognize revenue?
A) In January 2014, when the cash is received.
B) On December 31, 2014, after all services have been provided.
C) Equally throughout 2014, as the revenue is earned.
D) On December 31, 2013, when the contract is signed.
Correct Answer:
Verified
Correct Answer:
Verified
Q20: Adjusting entries must be made prior to
Q40: Which of the following entries properly closes
Q40: Match the following statements with the best
Q48: On October 1, 2013, a company paid
Q74: Calmar Corporation sold merchandise to a customer
Q77: One effect of recognizing depreciation is to
Q78: According to the revenue recognition principle,revenues are
Q98: When a company recognizes the portion of
Q159: What is the significance of the timing
Q187: If the end-of-year supplies on hand totaled