On December 15 of the Current Year,Conrad Accounting Services Signed

question 134

Multiple Choice

On December 15 of the current year,Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year.Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received?

• A)Monetary unit assumption.
• B)Going-concern assumption.
• C)Cost principle.
• D)Business entity assumption.
• E)Revenue recognition principle.

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Definitions:

Membership Characteristics

The attributes, traits, or qualities that define the individuals who are part of a group or organization.

Skills Mix

The range of abilities, expertise, and competencies that a team or workforce possesses.

Personalities

The combination of characteristics or qualities that form an individual's distinctive character, influencing their behaviors, thoughts, and emotion patterns.

Threshold Point

is the critical level or value at which a significant change occurs in the behavior or outcome of a process or system.