On August 31, 2009, Montana Corporation signed a four-year contract to provide services for Minefield Company at
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On August 31, 2009, Montana Corporation signed a four-year contract to provide services for Minefield Company at $30,000 per year. Minefield will pay for each year of services on the first day of each service year, starting with September 1, 2009. Using the accrual basis of accounting, when should Montana Corporation recognize revenue?
a. on the first day of each year when the cash is received
b. on the last day of each year after the services have been provided
c. equally throughout the year as services are earned
d. only at the end of the entire contract
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Related Book For
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen
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