Swordfish Co. earned $75,000 in 2009 and expects to receive 2/3 of the amount in 2010 and the remainder in 2011. How much revenue should they report in 2009?

Question

Quizplus · Accepted Answer

Swordfish Co. earned $75,000 in 2009, so they should report that as their revenue for 2009. While they expect to receive 2/3 of that amount in 2010 and the remainder in 2011, the revenue should only be reported in the year it was earned, which was 2009. Therefore, the best choice is D, $75,000.