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On December 15 of the Current Year, Myers Legal Services

question 82

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On December 15 of the current year, Myers Legal Services signed a $50,000 contract with a client to provide legal services to the client in the following year. Which accounting principle would require Myers Legal Services to record the legal fees revenue in the following year and not the year the cash was received?


Definitions:

Extradition

The formal process whereby one country or jurisdiction surrenders an individual to another country or jurisdiction where that individual is accused or convicted of a crime.

Treaty

A formal and legally binding agreement between two or more sovereign states, typically concerning peace, trade, alliances, or other international relations.

Canadian Citizen

An individual who legally belongs to Canada, either by birth or through the process of naturalization.

Charter

A formal document establishing a city, organization, university, or other entity, detailing its rights, privileges, and purposes.

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