Question

Showme Industries, a cash-basis business, records revenue when cash is collected. On September 1, 2014, Showme contracts with Maroon Corporation to provide services from November 1, 2014, through March 31, 2015. Showme receives payment in full of $15,000 on October 1, 2014. In preparing its financial statements for the fiscal year ended December 31, 2014 Showme will ____________ net income by _______.

Answer 1

Showme will increase net income by 15000.

Step-by-step explanation:

The cash basis is a method of recording accounting transactions for revenue and expenses only when the corresponding cash is received or payments are made. Thus, you record revenue only when a customer pays for a billed product or service, and you record a payable only when it is paid by the company

Showme

Cash basis bussines

Services 15000