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On December 1, 2017, B Corp. receives $1.800 in advance for an agreement to provide services equally during the months of December. January, and February. As of December 31, 2017, B Corp.: CIRCLE ONE: a. would recognize $600 cash under accrual accounting, and would recognize 1,800 cash under cash basis accounting b. would have a $1,200 liability to its client under accrual accounting, and would have a $1,800 liability to its client under cash basis accounting c. would recognize $600 revenue under accrual accounting, and would recognize $1,800 revenue under cash basis accounting d. would have a $0 liability to its client under accrual accounting, and would have a $1,200 liability to its client under cash basis accounting

On December 1, 2017, B Corp. receives $1.800 in advance for an agreement to provide services equally during the months of December. January, and February. As of December 31, 2017, B Corp.: CIRCLE ONE: a. would recognize $600 cash under accrual accounting, and would recognize 1,800 cash under cash basis accounting b. would have a $1,200 liability to its client under accrual accounting, and would have a $1,800 liability to its client under cash basis accounting c. would recognize $600 revenue under accrual accounting, and would recognize $1,800 revenue under cash basis accounting d. would have a $0 liability to its client under accrual accounting, and would have a $1,200 liability to its client under cash basis accounting

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On December 1, 2017, B Corp. receives $1.800 in advance for an agreement to provide services equally during the months of December, January, and February. As of December 31, 2017, B Corp.: CIRCLE ONE: a. would recognize $600 cash under accrual accounting, and would recognize 1,800 cash under cash basis accounting b. would have a $1,200 liability to its client under accrual accounting, and would have a $1,800 liability to its client under cash basis accounting C. would recognize $600 revenue under accrual accounting, and would recognize $1,800 revenue under cash basis accounting d. would have a $0 liability to its client under accrual accounting, and would have a $1,200 liability to its client under cash basis accounting
Transcribed Image Text:On December 1, 2017, B Corp. receives $1.800 in advance for an agreement to provide services equally during the months of December, January, and February. As of December 31, 2017, B Corp.: CIRCLE ONE: a. would recognize $600 cash under accrual accounting, and would recognize 1,800 cash under cash basis accounting b. would have a $1,200 liability to its client under accrual accounting, and would have a $1,800 liability to its client under cash basis accounting C. would recognize $600 revenue under accrual accounting, and would recognize $1,800 revenue under cash basis accounting d. would have a $0 liability to its client under accrual accounting, and would have a $1,200 liability to its client under cash basis accounting
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