On December 15 of the Current Year,Conrad Accounting Services Signed

question 134

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

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Definitions:

Substitute Goods

Products or services that can replace each other in use, serving the same purpose, leading consumers to switch based on changes in price, availability, or preferences.

Price Floor

A government-imposed minimum price charged for a commodity, preventing prices from falling below that level to protect producers.

Competitive Market

A market structure characterized by many buyers and sellers, none of whom can influence the market price on their own.

Market for Human Organs

The controversial concept or practice involving the buying and selling of human organs for transplantation, often debated for ethical and moral reasons.