Avatar, Inc began operations on July 1, 2011. On August 1, it received 24,000 in advance for services to be performed evenly over the next 12 months.
How much of this revenue should the company report on its income statement for the year ended December 31, 2012?
A) 0
B) 2,000
C) 14,000
D) 10,000
Question 2
In preparing a bank reconciliation, the amount of deposits in transit is deducted from the balance per bankstatement.
a. True
b. False
Indicate whether the statement is true or false
