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View Full Version : Recognize month the revenue is accounted for.


robmatthews71
Jan 11, 2010, 08:13 PM
The below question, I have take into account the accrual basis and believe I have the correct answer of letter "a". Any input is appreciated.

A firm performed services for a client in September for $100. It collected $70 in September and $30 in October. Based on this information, for the month of October the firm should recognize

a. no revenue.
b. revenue of $30.
c. revenue of $100.
d. None of the above.

morgaine300
Jan 11, 2010, 10:32 PM
Correct. Revenue recognized when earned.