ACCOUNTING EXIT EXAM QUIZ

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ACCOUNTING EXIT EXAM QUIZ

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ACCOUNTING EXIT EXAM QUIZ

May 20, 2026, 05:38 AM

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ACCOUNTING EXIT EXAM QUIZ

May 20, 2026, 05:38 AM

Here’s the step-by-step reasoning:

1. Total cash received in advance: $12,000
2. Contract period: One year, from November 1 to October 31 of the next year.
3. Monthly revenue:
12,000 ÷ 12 months = 1,000 per month
4. Months completed by December 31:
· November: 1 month
· December: 1 month
· Total months before December 31 = 2 months (November and December)
5. Revenue recognized by December 31:
2 × 1,000 = 2,000

So $2,000 should be recognized as revenue on December 31.

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