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    robmatthews71's Avatar
    robmatthews71 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 11, 2010, 08:13 PM
    Recognize month the revenue is accounted for.
    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's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jan 11, 2010, 10:32 PM

    Correct. Revenue recognized when earned.
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