Enoch,IncBegan Operations on July 1,2011

question 44

Multiple Choice

Enoch,Inc.began operations on July 1,2011.On August 1,it received $12,000 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 31,2011?

• A)$12,000
• B)$1,000
• C)$11,000
• D)$5,000

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Definitions:

Net Profit

The amount of money a company earns after subtracting all expenses, taxes, and costs from its total revenue.

Upside Price Movement

The potential increase in the price of an asset or security from its current level.

Bull Spread

An options strategy aiming to profit from a moderate increase in the price of the underlying asset.

Security Fall

A decrease in the price or value of a security, such as a stock or bond, often influenced by market conditions and investor behavior.