Which of the following transactions for July represents revenue for the month?
A) Collected $1000 in advance for architectural services to be provided in August.
B) Completed architectural services for $30 000, payable in seven days.
C) Borrowed $60 000 from the bank, repayable over two years.
D) Collected cash of $5000 from an account receivable outstanding since February.

Question

Quizplus · Accepted Answer

Completing architectural services and receiving payment for it represents revenue for the month. Option A is a prepayment for services to be provided in August, not July. Option C is a borrowing transaction that has no impact on revenue. Option D is a collection of an outstanding account receivable, but the service was likely provided in a previous month, not July.

Which of the Following Transactions for July Represents Revenue for the Month