Bill Operates a Proprietorship Using the Cash Method of Accounting

question 70

Multiple Choice

Bill operates a proprietorship using the cash method of accounting, and this year he received the following payments: -$100 in cash from a customer for services rendered this year
-a promise from a customer to pay $200 for services rendered this year
-tickets to a football game worth $250 as payment for services performed last year
-a check for $170 for services rendered this year that Bill forgot to cash
How much income should Bill realize on Schedule C?

• A)$100
• B)$300
• C)$350
• D)$270
• E)$520

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Definitions:

Seller's Market

A market condition characterized by a shortage of goods available for sale, leading to higher prices and favorable conditions for sellers.

Qualified Applicants

Individuals who meet the education, experience, and skill requirements set by an employer for a specific job position.

Interviewing Manager

The person responsible for conducting interviews, assessing candidates, and making hiring decisions to fill a position within an organization.

Extend Offer

The process of presenting a formal job proposal to a candidate, including terms of employment such as salary, benefits, and role responsibilities.