The amounts of revenue that would appear on the 2012 and 2013 income statements would be:
A) $16,000/$16,000.
B) $48,000/$-0-.
C) $5,333/$16,000.
D) $5,833/$29,187.

Question

Quizplus · Accepted Answer

In 2012, revenue earned would be $16,000/4 quarters = $4,000 per quarter. As only 3 quarters are recognized, revenue earned in 2012 would be $4,000 x 3 = $12,000.

In 2013, revenue earned would be $16,000/4 quarters = $4,000 per quarter. As all quarters are recognized in 2013, revenue earned in 2013 would be $4,000 x 4 = $16,000.

Therefore, the amounts of revenue that would appear on the 2012 and 2013 income statements would be $5,333 and $16,000, respectively. Hence, the best choice is C.

The Amounts of Revenue That Would Appear on the 2012