Ben Jollu is working on a six month building project worth $16,000 to be paid...
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Finance
Ben Jollu is working on a six month building project worth $16,000 to be paid at the completion of the project. He has started three months ago and has progressed according to the targeted completion for each month. Ben also has spent half the budgeted cost for this project amounting to $2,500. For the quarterly report at the end of the month, Ben decided to recognise $8,000 revenue from the project and the related expenses. Choose one correct statement from the following options:
Select one:
a.
Ben should not recognize the revenue until he sends an invoice to his client, but can recognise his expenses since they have been paid
b.
Ben is applying the comparability concept in accounting
c.
Ben is applying the matching principle in accounting
d.
Ben is applying the going concern assumption in accounting
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