During 2019,Ocean Consulting Had the Following Transactions with It Clients

question 72

Multiple Choice

During 2019,Ocean Consulting had the following transactions with it clients (customers) : On February 1,2019,the company received cash of $10,000 from clients in payment of their account balances as of December 31,2018.
On November 1,2019,the company received $4,000 cash as payments in advance for services to be performed in 2020.
The company received a total of $26,000 in cash for services that were performed during 2019.
The company sent bills totaling $8,000 to clients for services performed during 2019;this amount was unpaid as December 31,2019.
Which of the following statements about the activities for Ocean Consulting for 2019 is correct?

• A)If Accounts Receivable at December 31,2018 totaled $50,000,the amount of Accounts Receivable to be reported on the Balance Sheet at December 31,2019 will be $48,000.
• B)The $4,000 received from clients for services to be performed next year will be reported as revenue on the 2019 income statement.
• C)The $8,000 owed by clients for services performed this year will be reported as Accounts Payable on the balance sheet at December 31,2019.
• D)The $10,000 received this year from clients in payment of their accounts will be reported as Services Revenue on the 2019 income statement.

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Definitions:

Sales Manager

A sales manager is responsible for directing and guiding a sales team, setting sales goals, analyzing data, and developing training programs to improve sales performance.

Gantt Chart

A graphical representation of a project schedule, showing the start and finish dates of the various components and activities, useful in planning, organizing, and tracking a project's progress.

Planning

The process of making preparations for a future event or task, including setting goals and determining the means to achieve them.

Scheduling Activities

The process of organizing events, tasks, or operations in time, often requiring prioritization and time management.