William, a Cash-Basis Sole Proprietor, Had the Following Receipts and Disbursements

question 61

Multiple Choice

William, a cash-basis sole proprietor, had the following receipts and disbursements for 2015: For 2015, what amount should William report as net earnings from self-employment?

• A)$13,400
• B)$14,000
• C)$15,000
• D)$20,000
• E)None of the above

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Definitions:

Prior Quarter Sales

The total revenue generated by a business in the quarter immediately preceding the current one.

Accounts Payable

The amount of short-term debts or obligations a company owes to its suppliers or creditors.

Account Receivable

Debts owed by customers to a company for products or services that have been dispatched but not settled.

Inventory Sale

The process of selling goods from a company's inventory to generate revenue, often tracked to understand sales trends and inventory turnover.