Kingman Consulting Uses the Cash Basis of Accounting and a Fiscal

question 59

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 $5000 per month.On February 12 2022 Renfro pays Kingman $25000 in full for all services rendered from September 1 2021 to January 31 2022.Kingman understated accrual basis revenues by ________ on its year-end 2021 financial statement.

• A)$20000
• B)$5000
• C)$25000
• D)$15000

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Definitions:

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Fundamental principles or ideas that serve as the foundation for a subject or system.

Intangible Products

Non-physical items that hold value, such as software, copyrights, and services.

Tangible Products

Physical items that can be perceived by touch such as electronics, apparel, and automobiles.

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