During 2015, Maverick Law Firm Had the Following Transactions with It

question 106

Multiple Choice

During 2015, Maverick Law Firm had the following transactions with it clients (customers) :
-On February 1, 2015, the company received cash of $5,000 from clients in payment of their account balances as of December 31, 2014.
-On November 1, 2015, the company received $2,000 cash as payments in advance for law services to be performed in 2016.
-The company received a total of $13,000 in cash for law services that were performed during 2015.
-The company sent bills totaling $4,000 to clients for services performed during 2015; this amount was unpaid as December 31, 2015.
-Use the information above to answer the following question.Which of the following statements about the activities for Maverick Law Firm for 2015 is correct?

• A) If Accounts Receivable at December 31, 2014 totaled $25,000, the amount of Accounts Receivable to be reported on the Balance Sheet at December 31, 2015 will be $24,000.
• B) The $2,000 received from clients for law services to be performed next year will be reported as revenue on the 2015 income statement.
• C) The $4,000 owed by clients for services performed this year will be reported as Accounts Payable on the balance sheet at December 31, 2015.
• D) The $5,000 received this year from clients in payment of their accounts will be reported as Services Revenue on the 2015 income statement.

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Definitions:

Perceived Pitch

The subjective experience or interpretation of the frequency of a sound, determining how high or low it seems.

Basilar Membrane

A critical structure in the cochlea of the inner ear that plays a key role in the sense of hearing by vibrating in response to sound.

Auditory Stimulus

A sound or noise that triggers a response in the auditory system of the brain.

Hair Cells

Sensory cells located in the inner ear that transduce mechanical sound vibrations into neural signals, enabling hearing.