On October 15, a Company Received $15,000 Cash as a Down

question 36

True/False

On October 15, a company received $15,000 cash as a down payment on a consulting contract. The amount was credited to Unearned Consulting Revenue. By October 31, 10% of the services required by the contract were completed. The company will record consulting revenue of $1,500 from this contract for October.

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Definitions:

External Auditors

Independent accountants or audit firms that review a company's financial statements to ensure accuracy and compliance with accounting standards.

Securities & Exchange Commission

A government agency that oversees securities transactions, activities of financial professionals, and mutual fund trading to prevent fraud and intentional deception.

Financial Disclosure

The process of providing financial information to stakeholders about a company's performance, financial status, and operations.

Form 10-K

An annual report required by the U.S. Securities and Exchange Commission that gives a comprehensive summary of a company's financial performance.