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A Consulting Firm Provided Services Last Month and Billed Its

question 63

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A consulting firm provided services last month and billed its client.This month,the company received payment from the customer.What impact does this month's transaction have on the firm's working capital?


Definitions:

ASU 2016-14

Accounting Standards Update 2016-14, which addresses the presentation of financial statements for not-for-profit entities, enhancing transparency and uniformity.

Cash Donations

Monetary contributions given to organizations, individuals, or entities without expectation of return, often for charitable purposes.

Cash Donation

A monetary contribution made to support a cause, organization, or individual, typically without expecting anything in return.

Fair Value

A financial metric that represents the price at which an asset would be bought or sold in an orderly transaction between market participants at the measurement date.

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