Kingman Consulting Uses the Cash Basis of Accounting and a Fiscal

question 237

Multiple Choice

Kingman Consulting uses the cash basis of accounting and a fiscal year ending December 31.Beginning on September 1, 2021, Kingman performs services for Renfro International at a rate of $5,000 per month.On February 12, 2022, Renfro pays Kingman $25,000 in full for all services rendered from September 1, 2021 to January 31, 2022.Kingman understated revenues by ________ on its 2021 income statement.

• A)$20,000
• B)$5,000
• C)$25,000
• D)$15,000

---

Definitions:

High Quality

A characteristic of products or services that meet or exceed customer expectations and are superior in terms of durability, reliability, or performance.

Expensive Engagement Ring

A high-cost ring typically given as a symbol of betrothal.

Everyday Clothes

Apparel items that are worn on a daily basis, typically casual or informal in nature.

High Risk Individuals

High risk individuals are those considered more likely to encounter certain hazards or negative outcomes due to their behaviors, characteristics, or environmental factors.