The Following Events Pertain to Bills Company

question 128

Multiple Choice

The following events pertain to Bills Company:

Using accrual-basis accounting,on which date should Bills Company record revenue for the accounting and tax services?

• A)December 30,2012.
• B)December 31,2012.
• C)January 4,2013.
• D)January 11,2013.

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Definitions:

Resource Markets

Markets where productive inputs like labor, raw material, and capital are bought and sold.

Marginal Productivity Theory

A principle stating that the wage paid to a factor of production, such as labor, will equal the additional output or marginal product that the factor produces.

Marginal Productivity Theory

An economic theory that suggests the value of a good or service is determined by the productive resources involved in its production, emphasizing the contribution of each unit of labor or capital.

Income Distribution

Refers to the way in which total income is shared among the members of a society.