The Following Events Pertain to Bills Company: Using Cash-Basis

question 40

Multiple Choice

The following events pertain to Bills Company: Using cash-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.

---

Definitions:

Subsequent Purchaser

An individual or entity that acquires ownership of property or goods after they have been initially sold by the original owner.

Notary Public

An authorized official who can attest to the authenticity of signatures on documents, among other duties, to help prevent fraud.

Grantor's Signature

The signature of the individual or entity that grants or conveys rights, typically found in legal documents like deeds and trusts, signifying agreement and compliance.

Acknowledgment

The act of recognizing or admitting something as true, often in the context of legal documents as a formal declaration that the document is signed voluntarily.