Colbert Operates a Catering Service on the Accrual Method

question 88

Multiple Choice

Colbert operates a catering service on the accrual method. In November of year 1 Colbert received a payment of $9,000 for 18 months of catering services to be rendered from December 1^st of year 1 through May 31^st year 3. When must Colbert recognize the income if his accounting methods are selected to minimize income recognition?

• A) $500 is recognized in year 1, $6,000 in year 2, and $2,500 in year 3.
• B) $500 is recognized in year 1 and $8,500 in year 2.
• C) $9,000 is recognized in year 3.
• D) $2,500 is recognized in year 1 and $6,500 in year 2.
• E) $9,000 is recognized in year 1.

Understand different types of faulty thinking and biases.

Recognize the importance of considering alternative explanations and critical thinking.

Identify key psychological concepts and historical perspectives in psychology.

Understand the principles of psychoanalysis and psychodynamic therapy.

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