Newhart Corp. performed services for clients for $350,000 this year. $300,000 of

Question

Newhart Corp. performed services for clients for $350,000 this year. $300,000 of this amount was collected in cash this year. Which of the following statements is true? Select one: O a. The amount reported as revenue on the income statement this year should be $300,000. O b. The amount reported as revenue on the income statement this year should be $350,000 O c. The amount reported as collections from clients on the statement of cash flows this year should be $50.000 O d. The amount reported as collections from clients on the statement of cash flows this year should be $350,000

Explanation / Answer

Since Newchart performed services for $350,000 during the year, the total revenue that should be reported would be $350,000 and the collection of $300,000 would be reported on cashflow statement as Collections from clients.

Thus the following is the true statement :

The amount reported as revenue on the income statement this year should be $350,000.

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