A CPA prepares tax returns for clients and bills them after the work is completed. It usually takes two weeks of work to prepare the tax returns. It takes 30 days on average to receive payment from the clients. The CPA uses cash-basis accounting. The revenue should be recorded when the CPA: O A. receives payments from the clients. OB. bills the clients. OC. starts working on the tax returns O D. completes working on the tax returns.
A CPA prepares tax returns for clients and bills them after the work is completed. It usually takes two weeks of work to prepare the tax returns. It takes 30 days on average to receive payment from the clients. The CPA uses cash-basis accounting. The revenue should be recorded when the CPA: O A. receives payments from the clients. OB. bills the clients. OC. starts working on the tax returns O D. completes working on the tax returns.
Chapter12: Tax Administration And Tax Planning
Section: Chapter Questions
Problem 11MCQ
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Question
![A CPA prepares tax returns for clients and bills them after the work is completed. It usually takes two weeks of work to prepare the tax returns. It takes 30 days on
average to receive payment from the clients. The CPA uses cash-basis accounting. The revenue should be recorded when the CPA:
O A. receives payments from the clients
O B. bills the clients.
OC. starts working on the tax returns
O D. completes working on the tax returns.
Click to select your answer.
11-50nm
99+](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F20848197-a9ce-4d04-8b24-400207a60c4a%2F24b1c732-c36d-4a00-a827-740aea08ea20%2F6tnid1u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A CPA prepares tax returns for clients and bills them after the work is completed. It usually takes two weeks of work to prepare the tax returns. It takes 30 days on
average to receive payment from the clients. The CPA uses cash-basis accounting. The revenue should be recorded when the CPA:
O A. receives payments from the clients
O B. bills the clients.
OC. starts working on the tax returns
O D. completes working on the tax returns.
Click to select your answer.
11-50nm
99+
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