On december 15 of the current year, conrad accounting services signed a $40,000 contract with a client to provide bookkeeping services to the client in the following year. which accounting principle would require conrad accounting services to record the bookkeeping revenue in the following year and not the year the cash was received?
a. monetary unit assumption.
b. going-concern assumption.
c. cost principle.
d. business entity assumption.
e. revenue recognition principle.

The following transactions occur for badger biking company during the month of june: a. provide services to customers on account for $32,000. b. receive cash of $24,000 from customers in (a) above. c. purchase bike equipment by signing a note with the bank for $17,000. d. pay utilities of $3,200 for the current month. analyze each transaction and indicate the amount of increases and decreases in the accounting equation. (decreases to account classifications should be entered as a negative.)