Robert Rogers, a professional accountant, performed accounting services for a client in December. A bill was mailed to the client on December 30. Robert received a cheque in the mail on January 5. The recognition criteria for revenues requires that which of the following accounts appears on the balance sheet at December 31?

Question

Quizplus · Accepted Answer

Accounts receivable should appear on the balance sheet at December 31 because Robert Rogers performed the services in December, billed the client, but had not yet received payment by year-end. This creates an accounts receivable, representing money owed to him by the client.

Robert Rogers, a Professional Accountant, Performed Accounting Services for a Client