Given the Following Information: What Would Expected Net Income Be

question 62

Multiple Choice

Given the following information: What would expected net income be if the company experienced a 10 percent increase in fixed costs and 10 percent increase in sales volume?

• A)$1,750.
• B)$1,550.
• C)$1,250.
• D)$1,375.

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Definitions:

Debited

An accounting entry that increases an asset or expense account, or decreases a liability or equity account.

Cash Receipts

The collection of money, including coins, notes, cheques, and electronic transfers, by a business from transactions involving goods or services.

Cash Account

A financial account that records cash transactions, including receipts and payments of cash.

Debited

A term used in accounting to indicate a transaction that increases an asset or expense account, or decreases a liability or equity account.