[Solved] Binz Company Provides Cleaning Services and Sells Garbage Bins to Office

Question 102
Multiple Choice

Binz Company provides cleaning services and sells garbage bins to office clients.On June 1st,Binz delivered 100 garbage bins to a client,and also entered into a 5-year contract for Binz to provide cleaning services to that client.Which of the following is most likely to be true?

A)Revenue for the garbage bins and the cleaning services must be recognized on June 1st.
B)Revenue for the garbage bins is recognized on June 1st and no revenue will be recognized for the cleaning services until the end of the 5th year.
C)Revenue for the garbage bins is recognized on June 1st and revenue for the cleaning service is recognized over the 5 years as those services are performed.
D)Binz Company should not recognize any revenue until the end of the 5th year.

10+ million students use Quizplus to study and prepare for their homework, quizzes and exams through 20m+ questions in 300k quizzes.

Business

Explore our library and get Accounting Homework Help with various study sets and a huge amount of quizzes and questions

3.5K

Study sets

66.5K

Quizzes

5.9M

Questions

Upload material to get free access

Upload Now Upload Now
Upload Now

Invite a friend and get free access

Upload NowInvite a friend
Invite a friend

Subscribe and get an instant access

See our plansSee our plans
See our plans