Which of the Following Statements Is TRUE About the Activities

question 100

Multiple Choice

Which of the following statements is TRUE about the activities for Maverick Law Firm for 2010?

• A) If Accounts receivable prior to February 1, 2010 was $25,000, the amount of Accounts Receivable to be reported on the Balance Sheet at December 31, 2010 will be $24,000.
• B) The $2,000 received from clients for law services to be performed next year will be reported as revenue on the Income Statement this year since cash was received.
• C) The $4,000 billed to clients for services rendered this year and unpaid as of December 31 will be reported on the Balance Sheet at December 31 as Accounts Payable.
• D) The $5,000 received this year from clients in payment of their accounts will be reported on the Income

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Definitions:

Automatic Dissolve

A process by which a company or partnership ends its existence without formal action or legal proceedings due to predetermined conditions being met.

Transfer to Heirs

The process by which ownership of property or assets is legally passed from a deceased person to their designated inheritors or next of kin.

Metro Delivery

A service focused on the fast and efficient transportation of goods within metropolitan or urban areas.

Franchise Arrangement

A legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business.