On December 15 of the Current Year, Conrad Accounting Services

question 222

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

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