CycleWorld sells motorcycles and also provides operating training and license testing. Training is $75 per hour, and testing is $125 per hour. How should it show license testing in its Service Item? Select an answer: as a separate category of Service Revenue as a separate level under Motorcycle Sales as a separate level under Service Revenue

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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CycleWorld sells motorcycles and also provides operating training and license testing. Training is $75 per hour, and testing is $125 per hour. How should it show license testing in its Service Item?

Select an answer:

  • as a separate category of Service Revenue
  • as a separate level under Motorcycle Sales
  • as a separate level under Service Revenue
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