Allen Company Is Hired on December 15,2016 to Perform Services,beginning

question 31

Multiple Choice

Allen Company is hired on December 15,2016 to perform services,beginning on December 16,2016.Under this agreement,Allen will earn $3,700 monthly and receive payment on January 15,2017.What amount of service revenue should be recorded for the year ending December 31,2016?

• A)0
• B)$1,850
• C)$3,700
• D)There is not enough information to answer this.

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Definitions:

Expected Future Value

The anticipated value of an investment at a specific future date, taking into account potential growth or depreciation based on various factors such as market conditions and interest rates.

Compounded Interest

Interest on a loan or deposit calculated based on both the initial principal and the accumulated interest from previous periods.

Amortized Loan

A loan with scheduled periodic payments that consist of both principal and interest, where initially more interest is paid than principal.

Constant Payments

A fixed amount of money paid periodically in a loan agreement or financial investment, such as in an annuity or mortgage.