Gomez Company collected $9,000 on September 1, 2016 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, 2016? How much would it report as cash flows from operating activities for 2016?
A. $3,000; $3,000
B. $9,000; $9,000
C.$3,000; $9,000
D. $0; $9,000
Answer:C
Gomez Company collected $9,000 on September 1, 2016 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, 2016? How much would it report as cash flows from operating activities for 2016?
A. $3,000; $3,000 B. $9,000; $9,000 C.$3,000; $9,000 D. $0; $9,000