On August 31, Farrell Corporation signed a one-year contract to provide services to Harris Company for $30,000.Harris will pay for the services on September 1.Using the accrual basis of accounting, when should Farrell Corporation recognize revenue?
A) September 1 of the current year when the cash is received from Harris
B) On August 31 of the next year when all services have been provided
C) Throughout the year as the revenue is earned
D) At December 31 of the current year, and August 31 of the next year
Correct Answer:
Verified
Q17: Camp Consulting Services started business on January
Q20: During December, Filmore Inc.purchased $800 of supplies
Q23: Winston Corp.had $1,800 of supplies on hand
Q24: Wentworth Company received advance payments from customers
Q50: The selection of historical cost over current
Q56: Which one of the following statements is
Q66: Expenses can be matched against revenue
A)if the
Q68: Expenses originate from
A)using an asset or recognizing
Q84: Which one of the following is an
Q89: What happens to the accounting equation when
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents