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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Definitions:

Ovaries

Female reproductive organs in vertebrates that produce eggs (ova) and hormones like estrogen and progesterone.

Estrogen

A collection of steroid hormones that support the growth and preservation of female body traits.

Progesterone

A steroid hormone released by the ovaries that prepares the uterus for pregnancy and maintains it until birth.

Melatonin

A hormone produced by the pineal gland that regulates sleep and wake cycles.