Question
On December 31, 2010, Bosco Corporation signed a one-year contract to provide services to Cosco Company for $120,000. Cosco will pay for the services on
On December 31, 2010, Bosco Corporation signed a one-year contract to provide services to Cosco Company for $120,000. Cosco will pay for the services on January 1, 2011. Using the accrual basis of accounting, when should Bosco Corporation recognize revenue?
| a. | On January 1, 2011, when the cash is received from Cosco. | |
| b. | On December 31, 2011 (the end of the next year), when all services have been provided. | |
| c. | Equally throughout the year 2011, as the revenue is earned. | |
| d. | On December 31, 2010, when the contract is signed. |
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Edi Audit And Control
Authors: I. Walden, A. Braganza
3rd Edition
1855542080, 978-1855542082
