Cosmos Computer Consulting Is Preparing Their Year-End Financial Statements

question 8

Multiple Choice

Cosmos Computer Consulting is preparing their year-end financial statements.They completed two projects in the last month: one worth $12,000 that they have billed the customer for but not yet been paid, and one worth $18,000 that they have not yet had a chance to bill the customer for.In the case of the second contract they had received a $3,000 deposit at the beginning of the contract.With respect to these two contracts what amount would be recorded as Revenue for Cosmos at year-end?

• A)$12,000
• B)$15,000
• C)$27,000
• D)$30,000

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Definitions:

Interest Rates

The percentage of a loan or deposit amount charged as interest to the borrower or paid to the investor.

Escalating Rate GIC

A Guaranteed Investment Certificate (GIC) with an interest rate that increases at predetermined intervals throughout the term.

Fixed-rate GIC

Guaranteed Investment Certificate with a fixed interest rate for the term of the investment.

Maturity

The date on which the principal amount of a financial instrument such as a bond or loan is due to be paid in full.