In 2015,a major drug company agreed to give a not-for-profit private college $300,000 to perform testing of a new drug. An advance payment of $200,000 was received in 2015. The college was to receive $1,500 per individual test. In 2015,the college completed 100 tests. How much revenue should the college report for 2015?

Question

Quizplus · Accepted Answer

The college received an advance payment of $200,000 in 2015, which is not revenue but a liability. The revenue would be calculated based on the completed tests, which were 100 at $1,500 each, totaling $150,000. Therefore, the correct choice is C.

In 2015,a Major Drug Company Agreed to Give a Not-For-Profit