On December 15 of the Current Year, Conrad Accounting Services

question 222

Multiple Choice

On December 15 of the current year, Conrad Accounting Services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year. Which accounting principle would require Conrad Accounting Services to record the bookkeeping revenue in the following year and not the year the cash was received?

• A) Going-concern assumption.
• B) Monetary unit assumption.
• C) Measurement (Cost) principle.
• D) Business entity assumption.
• E) Revenue recognition principle.

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Definitions:

Timetable

A scheduled plan of times at which events, classes, or transport services are intended to occur.

Budget Management

The process of planning, organizing, directing, and controlling the financial resources and spending of an organization or project to achieve its objectives.

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Specific goals set by public relations professionals to guide communication efforts and measure success in influencing public perception and achieving organizational goals.

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The broad strategy and orientation of a company, along with how its different business units cooperate to accomplish specific objectives.