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In May 2 0 2 3 , Yang Ltd . received $ 6 , 0 0 0 in cash for services performed in May 2

In May 2023, Yang Ltd. received $6,000 in cash for services performed in May 2023 and
$8,000 in cash for services to be performed in June 2023. Yang also received a bill of $1,000 for
telecommunication services used in May 2023, but will not pay the amount until mid June 2023.
Which of the following combination of amounts should Yang recognize in May 2023 under the
accrual basis of accounting?
A. $6,000 of revenue and $1,000 of expense.
B. $14,000 of revenue and $1,000 of expense.
C. $14,000 of revenue and $0 of expense.
D. $6,000 of revenue and $0 of expense.
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