The Maroon & Orange Gym,Inc

question 110

Multiple Choice

The Maroon & Orange Gym,Inc. ,uses the accrual method of accounting.The corporation sells memberships that entitle the member to use the facilities at any time.A one-year membership costs $480 ($480/12 = $40 per month) ;a two-year membership costs $720 ($720/24 = $30 per month) .Cash payment is required at the beginning of the membership period.On July 1,2016,the company sold a one-year membership and a two-year membership.The company should report as gross income from the two contracts:

• A)$1,200 in 2016.
• B)$960 in 2016.
• C)$180 in 2018.
• D)$780 in 2017
• E)None of these.

---

Definitions:

Clinicians

Clinicians are healthcare professionals who work directly with patients, diagnosing and treating illness, injury, and other physical or mental impairments.

Experiments

Scientific procedures carried out to make a discovery, test a hypothesis, or demonstrate a known fact.

Causal Explanations

The identification of causes or reasons that explain why something happens or exists.

Descriptions

The act of giving a detailed account or explanation of something in words.