Sparkling Pools Provides $1,000 of Pool Maintenance Services During July

question 23

Multiple Choice

Sparkling Pools provides $1,000 of pool maintenance services during July and collects payment in August.The company performs $1,600 of pool maintenance services during July that were paid for in June.The company accepts an order to perform $500 of pool maintenance services in August and will be paid in the same month.Revenue should be credited for:

• A)$1,600 in June,$1,000 in July,and $500 in August.
• B)$1,600 in June,$0 in July,and $1,500 in August.
• C)$0 in June,$1,600 in July,and $1,500 in August.
• D)$0 in June,$2,600 in July,and $500 in August.

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Definitions:

OSC

The Ontario Securities Commission, a regulatory agency in Ontario, Canada that oversees the capital markets in the province.

CICA Handbook

The official manual for accounting practices in Canada, issued by the Canadian Institute of Chartered Accountants, serving as a reference for accountants on standards and regulations.

Canadian Accounting Standards

The set of accounting principles that guide financial reporting and practices in Canada, ensuring consistency and transparency across financial statements.

Publicly Accountable Enterprises

Organizations that have a duty to report financial information to the public, often because their debt or equity instruments are traded in a public market.