On December 15,2015,a Company Receives an Order from a Customer

question 123

Multiple Choice

On December 15,2015,a company receives an order from a customer for services to be performed on December 28,2015.Due to a backlog of orders,the company does not perform the services until January 3,2016.The customer pays for the services on January 6,2016.The revenue principle requires the revenue to be recorded by the company on:

• A)December 15,2015.
• B)January 3,2016.
• C)December 28,2015.
• D)January 6,2016.

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Definitions:

Bureaus of Vital Statistics

Government agencies tasked with recording and maintaining essential records of births, deaths, marriages, and divorces.

Banks

Financial institutions licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Response Time

The amount of time it takes to react to a request, inquiry, or stimulus.

Defendant

The individual or group facing a legal case brought against them in a judicial setting.