In 2017, Costello Company performs work for a customer and bills the customer $10,000; it also pays expenses of $3,000. The customer pays Costello in 2018. If Costello uses the accrual-basis of accounting, then Costello will report
A. revenue of $10,000 in 2018.
B. expenses of $3,000 in 2018.
C. net income of $7,000 in 2018.
D. revenue of $10,000 in 2017.
Answer: D
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