Question
A contract for the rendering of services is entered into on 1 May 2020. The services are delivered continuously over a 1-year period commencing on
A contract for the rendering of services is entered into on 1 May 2020. The services are delivered continuously over a 1-year period commencing on 15 May 2020. The buyer pays for all the services on 30 May 2020.
How should the revenue be recognised?
Select one:
None of these
Over the year commencing 30 May 2020 on a straight-line basis
Over the year commencing 15 May 2020 on a straight-line basis
15 May 2020
30 May 2020
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso, Ibrahim M. Aly
2nd Canadian Edition
0471413658, 978-0471413653
