On October 1, Year 1, Gomez Company Collected $24,000 in Advance

question 83

Multiple Choice

On October 1, Year 1, Gomez Company collected $24,000 in advance from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would the company report as net cash flows from operating activities for Year 1?

• A)$6,000; $6,000
• B)$24,000; $24,000
• C)$6,000; $24,000
• D)$0; $24,000

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