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6 December, 14:47

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.

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  1. 6 December, 18:09
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    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.
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