A Company Entered into a 2-Month Contract for $50,000 on April

question 198

True/False

A company entered into a 2-month contract for $50,000 on April 1. It earned $25,000 of the contract services in April and billed the customer. The company should recognize the revenue when it receives the customer's check.

---

Definitions:

Investor

An individual or entity that allocates capital with the expectation of receiving financial returns, often involving equity ownership, debt purchases, or other financial instruments.

Called Bonds

Bonds that have been redeemed before their maturity date by the issuer, usually at a predefined call price.

Outstanding Bond Issues

Bonds that have been issued and are currently in circulation, yet to be repaid by the issuer.

Close Competitor

A company in the same industry offering similar products or services that directly competes with another company.