On December 1,2017,Cream Ale Ltd.receives $1,800 in advance for an agreement to brew beer during the months of December,January,and February.As of December 31,2017,Cream Ale Ltd:
A) would have a $1,200 liability to its client under accrual accounting, and would have a $1,800 liability to its client under cash-basis accounting
B) would have recognized $600 revenue under accrual accounting, and would have recognized $1,800 revenue under cash-basis accounting
C) would have a $0 liability to its client under accrual accounting, and would have a $1,200 liability to its client under cash-basis accounting
D) would have recognized $600 cash under accrual accounting, and would have recognized 1,800 cash under cash-basis accounting
Correct Answer:
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