This month, a company receives $5,000 from a regular customer, of which $3,000 is for products delivered last month and $2,000 is for products that will be delivered next month. How much revenue should the company record for this month?

1 point

0

$2,000

$5,000

$3,000

2.

Question 2

In December, a company signed a contract with a regular customer to sell products for $100,000. In January, the company received a payment of $100,000 from this customer for products to be delivered in February. Revenue regarding this transaction is recognized:

1 point

In February, when the products are delivered

In December, when the contract is signed

In January, when payment is received

Equally over the 3 months

3.

Question 3

In December, a company signed a contract with a regular customer, who has a good payment history, to sell products for $120,000. In January, the company delivered the products to the customer. The customer paid the company $120,000 in cash in February. Revenue regarding this transaction is recognized:

1 point

In December, when the contract is signed

Equally over the 3 months

In January, when the products are delivered

In February, when payment is received

4.

Question 4

This month, a company receives $5,000 from a regular customer, of which $3,000 is for products delivered last month and $2,000 is for products that will be delivered next month. What is the net change in Accounts Receivable this month (assuming no other transactions affecting Accounts Receivable)?

1 point

Increase of $2,000

Decrease of $3,000

Decrease of $5,000

No change

5.

Question 5

This month, a company receives $5,000 from a regular customer, of which $3,000 is for products delivered last month and $2,000 is for products that will be delivered next month. What is the net change in Deferred Revenue this month (assuming no other transactions affecting Deferred Revenue)?

1 point

No change

Increase of $2,000

Decrease of $3,000

Increase of $5,000

Answer rating: 100% (QA)

Answers to your accounting questions Question 1 The company should record 2000 in revenue for this m... View the full answer