An adjusting entry involving recognition of accrued revenue is necessary at the

Question

An adjusting entry involving recognition of accrued revenue is necessary at the end of March in which of the following situations? Multiple Choice Midwood Consultants received payment in February for consulting services rendered in March. Midwood Consultants began working for a client on March 15; bills will be sent monthly beginning April 15 Midwood Consultants made payment in January for office rent for the first three months of the year On March 31, a mejor customer paid his bill for a consulting job completed in February

Explanation / Answer

Midwood Consultants began working for a client on March 15; bills will be sent monthly beginning April 15.

Because we have performed the service but the bill is pending to issue to the client, so the income accrued during the financial period has to be recorded in the same financial period.

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