Author Question: In February, Ira Roth, Public Accountant, accepted 500 in cash from a customer in exchange for a tax ... (Read 124 times)

RODY.ELKHALIL · **on:** Jul 5, 2018

In February, Ira Roth, Public Accountant, accepted 500 in cash from a customer in exchange for a tax return he promised to prepare in April. Which of the following statements is true?

A) Ira has earned 500 in February.
B) Ira has a 500 liability in February.
C) Ira does not need to record anything in February. He can wait until April.
D) Ira has to record Cash of 500 in April when the return is prepared.

Question 2

A vendor offers terms of 3/10, n/30. What is the ANNUAL interest rate the vendor is charging a buyer who does not pay within 10 days? (Assume there are 360 days in the year.

A) 3
B) 36
C) 54
D) 108