Aztec Co. signed contracts for $20,000 of services to be performed in the future. Which of...

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Aztec Co. signed contracts for $20,000 of services to be performed in the future. Which of the following statements is true? Aztec must recognize a liability for the $20,000 revenue to be earned. O Although cash is not yet received, Aztec must recognize the revenue. This is not an accounting event; nothing needs to be recorded. Aztec must accrue the $20,000 of revenue as the contract date approaches. Aztec Co. signed contracts for $20,000 of services to be performed in the future. Which of the following statements is true? Aztec must recognize a liability for the $20,000 revenue to be earned. O Although cash is not yet received, Aztec must recognize the revenue. This is not an accounting event; nothing needs to be recorded. Aztec must accrue the $20,000 of revenue as the contract date approaches.