Avatar,Inc

question 177

Multiple Choice

Avatar,Inc.began operations on July 1,2011.On August 1,it received $24,000 in advance for services to be performed evenly over the next 12 months.How much of this revenue should the company report on its income statement for the year ended December 31,2012?

• A)$0
• B)$2,000
• C)$14,000
• D)$10,000

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Definitions:

Food Supplies

Items necessary for the production and provision of food services, including raw ingredients, pre-packaged commodities, and other essential food items.

Retail Items

Products that are purchased by consumers for personal use, usually sold in retail stores or through online platforms.

B2C

An acronym for "Business-to-Consumer," describing transactions conducted directly between a company and consumers who are the end-users of its products or services.

Book to Capital

The ratio of a company's net book value of its assets to its capital, indicating how much of the company's assets are financed by shareholder capital.