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Assignment help 60

The Qwik-Pass CPA Review Co., charges $10,000 for its review classes, and offers a money-back guarantee, if the student does not pass on the first try.  The company collected $500,000 from students in its first class, which was held from July through October of 2012. Since the grades of the students on the November exam will not be known until January 2013, the owner of Quik-Pass intends to not recognize any income until the number of students who actually passed is known, so that he can report income and refund in the same year.  What is your advice to your client?


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