Zuhoor Muscat Company reported the following transactions during the year 2020: collected RO 45,000 cash from customers for services provided during 2020 and received RO 45,000 from customers for services provided during 2019. Additionally, Zuhoor Muscat Company provided services to customers on account during 2020 for a total of RO 90,000 and accepted RO 55,000 cash for services to be performed in 2021. If Zuhoor Muscat Company is applying accrual accounting, then the effect of the above transactions on its net income at year-end 2020 will be: O a. None of the options are correct. O b. Increase by RO 190,000. O c. Increase by RO 235,000. O d. Increase by RO 135,000. O e. Increase by RO 145,000.
Zuhoor Muscat Company reported the following transactions during the year 2020: collected RO 45,000 cash from customers for services provided during 2020 and received RO 45,000 from customers for services provided during 2019. Additionally, Zuhoor Muscat Company provided services to customers on account during 2020 for a total of RO 90,000 and accepted RO 55,000 cash for services to be performed in 2021. If Zuhoor Muscat Company is applying accrual accounting, then the effect of the above transactions on its net income at year-end 2020 will be: O a. None of the options are correct. O b. Increase by RO 190,000. O c. Increase by RO 235,000. O d. Increase by RO 135,000. O e. Increase by RO 145,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Zuhoor Muscat Company reported the following transactions during the year 2020: collected RO 45,000 cash from
customers for services provided during 2020 and received RO 45,000 fromn customers for services provided during 2019.
Additionally, Zuhoor Muscat Company provided services to customers on account during 2020 for a total of RO 90,000
and accepted RO 55,000 cash for services to be performed in 2021. If Zuhoor Muscat Company is applying accrual
accounting, then the effect of the above transactions on its net income at year-end 2020 will be:
O a.
None of the options are correct.
O b. Increase by RO 190,000.
O c.
Increase by RO 235,000.
O d. Increase by RO 135,000.
е.
Increase by RO 145,000.
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