22) ai consulting uses the accrual basis of accounting and a fiscal year ending december 31. beginning on…

22) ai consulting uses the accrual basis of accounting and a fiscal year ending december 31. beginning on september 1, 2024, ai performs services for acme international at a rate of $5,000 per month. on february 12, 2025, acme pays ai $25,000 in full for all services rendered from september 1, 2024 to january 31, 2025. by not recording any adjustment as of december 31, 2024 related to services provided to acme, ai understated revenues by ________ on its 2024 income statement. f) $15,000 g) $25,000 h) $5,000 j) $20,000

22) ai consulting uses the accrual basis of accounting and a fiscal year ending december 31. beginning on september 1, 2024, ai performs services for acme international at a rate of $5,000 per month. on february 12, 2025, acme pays ai $25,000 in full for all services rendered from september 1, 2024 to january 31, 2025. by not recording any adjustment as of december 31, 2024 related to services provided to acme, ai understated revenues by ________ on its 2024 income statement. f) $15,000 g) $25,000 h) $5,000 j) $20,000

Answer

Explanation:

Step1: Determine the months of service in 2024

From September 1, 2024 - December 31, 2024, there are 4 months.

Step2: Calculate the un - recorded revenue

The service rate is $5,000 per month. So the un - recorded revenue is $5,000×4. $5000\times4 = 20000$

Answer:

j) $20,000$