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

---

Definitions:

Ossification

The natural process by which bone is formed, renewed, and repaired in the body, converting cartilage or fibrous tissue into bone.

Mineral Deposits

Natural accumulations of minerals found within the Earth's crust that can be mined for economic value.

Infant Growth Restriction

A condition characterized by a fetus or infant having a significantly lower weight or size than expected for its gestational age, often due to genetic factors, maternal health, or environmental influences.

Postnatal Year

The first year of life following birth, a critical period for growth and development.