During the First Month of Operations, Kelly's Tax Service Provided

question 14

Multiple Choice

During the first month of operations, Kelly's Tax Service provided services and billed customers in the amount of $6000. By the end of the first month, $3600 had been collected and it was expected that the other $2400 would be collected during the following month. On Kelly's statement of comprehensive income for the first month, what amount of revenue should be reported?

• A) $0
• B) $2400
• C) $3600
• D) $6000

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Definitions:

Living Standards

Refers to the level of wealth, comfort, material goods available to a person, group, or nation, similar to the standard of living.

Human Capital

The collective skills, knowledge, and other intangible assets of individuals that can be used to create economic value.

Productivity

A measure of the efficiency of production, often calculated as the ratio of output to inputs in the production process.

Standard of Living

The amount of riches, ease, physical items, and basic requirements possessed by a distinct class or region.