contestada

The following events pertain to Bills Company:________. 1. December 28, 2021 Bills was contacted by a customer for possible accounting and tax services. 2. December 30, 2021 Bills signed a formal agreement with the customer to provide accounting and tax services in 2022. 3. January 4, 2022 The customer paid $1,000 in advance for the services to be provided by Bills Company. 4. January 11, 2022 Bills provided accounting and tax services to the customer. Using accrual-basis accounting, on which date should Bills Company record revenue for the accounting and tax services?a. December 30, 2018.
b. December 31, 2018.
c. January 4, 2019.
d. January 11, 2019.

Respuesta :

Zviko

Answer:

c. January 4, 2019.

Explanation:

Accrual Basis of Accounting states that transactions are recorded when they meet the definition and recognition criteria of either an Asset, Liability, Income or Expense.

According to International Financial Reporting Standard (IFRS), Revenue is recorded when the entity transfers control of the goods or services (IFRS 15).

Bills Company provided accounting and tax services to the customer on 4 January. This is the date that control is transferred.

Thus,  Bills Company record revenue for the accounting and tax services on  January 4, 2019.

Otras preguntas