Question with Becker FAR problem CPA-00545

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    Becker Question –

    Hey All,

    I am new here, so forgive me if I posted in the wrong area or if I did something I am not supposed to, but I simply don’t under stand this. So the problem deals with cash and accrual and a/r and asks you for the service revenue of the person involved, you basically have to apply the BASE logic to get the answer. I have no problem with that. The question is that in this problem, they add revenue and subtract collections… We are looking for the revenue here.

    The thing is, an earlier example which was also in F2 dealing with unearned revenue, added the cash receipts and subtracted the revenue.recognized. This was exactly the opposite of the first question. Can someone explain this? I wish I could be more clear. Any help would be greatly appreciated.

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