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Question 11 (24 points) On 12/1/20 your company signs a contract to provide consultancy services for 4 months to a customer, who paid $200,000 immediately

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Question 11 (24 points) On 12/1/20 your company signs a contract to provide consultancy services for 4 months to a customer, who paid $200,000 immediately for the entire contract. Moreover, if your company will reach a specific performance target, the customer will pay additional $40,000 at the end of the contract. You estimate a 70% likelihood that you will reach the target. Assume your company adopts the most likely amount method. Which of the following statements are true? (select all that apply - i.e., just one or as many as all of them) The journal entries recorded on 12/1 do not modify the current ratio The journal entries recorded on 12/1 do not modify the quick ratio The journal entries recorded on 12/1 do not modify net assets On 12/1, an income statement account is credited for 200,000 On 12/1, a balance sheet account is credited for 200,000 On 12/1, a contra-revenue account is credited for 200.000 Question 11 (24 points) On 12/1/20 your company signs a contract to provide consultancy services for 4 months to a customer, who paid $200,000 immediately for the entire contract. Moreover, if your company will reach a specific performance target, the customer will pay additional $40,000 at the end of the contract. You estimate a 70% likelihood that you will reach the target. Assume your company adopts the most likely amount method. Which of the following statements are true? (select all that apply - i.e., just one or as many as all of them) The journal entries recorded on 12/1 do not modify the current ratio The journal entries recorded on 12/1 do not modify the quick ratio The journal entries recorded on 12/1 do not modify net assets On 12/1, an income statement account is credited for 200,000 On 12/1, a balance sheet account is credited for 200,000 On 12/1, a contra-revenue account is credited for 200.000

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