A Pool Cleaning Service Signs a Contract with a New

question 203

Multiple Choice

A pool cleaning service signs a contract with a new customer on May 1.The pool is vacuumed and "shocked" for the customer on June 1,and the bill for the services is paid on July 1.Under the accrual basis,the business should recognize revenue on

• A)December 31.
• B)July 1.
• C)June 1.
• D)May 1.

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Definitions:

Predetermined

Established or decided in advance, often before the occurrence of an event or the taking of an action.

Enterprising Nonprofits

Nonprofit organizations that adopt entrepreneurial methods to generate revenue for their social missions.

Hybrid Models

Business or organizational models that blend characteristics from different traditional forms to achieve specific objectives.

Outside Investment

Capital that comes from sources external to a business or entrepreneur, such as angel investors, venture capitalists, or financial institutions, to support growth or startup.