A company has the following accrual-basis balances at the end of its first year of operation: Un-earned consulting fees $ 2,000, Consulting fees receivable 3,500, Consulting fee revenue 25,000. The company's cash-basis consulting revenue is what amount?

A. $30,500.

B. $19,500.

C. $26,500.

D. $23,500.

Question

Business

Skyler Parker

30 June, 13:32

A company has the following accrual-basis balances at the end of its first year of operation: Un-earned consulting fees $ 2,000, Consulting fees receivable 3,500, Consulting fee revenue 25,000. The company's cash-basis consulting revenue is what amount?

A. $30,500.

B. $19,500.

C. $26,500.

D. $23,500.

+1

Answers (1)

Know the Answer?

Manuel Strong · Answer 1

D. $23,500.

Explanation:

Company's cash-basis consulting revenue

= Consulting fee revenue - Consulting fees receivable + Unearned consulting fees

= $25,000 - $3,500 + $2,000

= $23,500

Therefore, The company's cash-basis consulting revenue is $23,500.

A company has the following accrual-basis balances at the end of its first year of operation: Un-earned consulting fees $ 2,000, Consulting fees receivable 3,500, Consulting fee revenue 25,000. The company's cash-basis consulting revenue is what amount?A. $30,500.B. $19,500.C. $26,500.D. $23,500.