The Following Events Pertain to Bills Company: Using Accrual-Basis Accounting,on

question 123

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?
$\begin{array}{|l|l|}\hline \text { December } 28,2018 & \begin{array}{l}\text { Bills was contacted by a customer for possible accounting and } \\\text { tax services. }\end{array} \\\hline \text { December } 30,2018 & \begin{array}{l}\text { Bills signed a formal agreement with the customer to provide } \\\text { accounting and tax senvices in } 2019 .\end{array} \\\hline \text { January } 4,2019 & \begin{array}{l}\text { The customer paid } \$ 1,000 \text { in advance tor the services to be } \\\text { provided by Bills Company. }\end{array} \\\hline \text { January } 11,2019 & \text { Bills provided accounting and tax services to the customer. } \\\hline\end{array}$

• A)December 30,2018.
• B)December 31,2018.
• C)January 4,2019.
• D)January 11,2019.

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Definitions:

Multi-channel Capabilities

The ability of a business to interact with its customers through multiple channels, such as physical locations, online, and over the phone, in a cohesive and integrated manner.

Online Ordering

The method of purchasing goods or services via the internet.

Omni-channel Strategy

A multi-channel approach to sales that seeks to provide customers with a seamless shopping experience, whether they are shopping online from a mobile device, a laptop, or in a brick-and-mortar store.

Go To Market Strategy

A plan that outlines how a company will introduce its products or services to the market effectively.