Natasha Graduated at the Top of Her High School Class

question 14

Multiple Choice

Natasha graduated at the top of her high school class and received a $10,000 scholarship to attend the college of her choice.Natasha decided to attend State University and spent her $10,000 as follows: $\begin{array}{lr}\text { Dormitory room } & \$ 1,500 \\\text { Cafeteria meals } & 1,000 \\\text { Tuition } & 6,600 \\\text { Books and supplies } & 900\end{array}$
How much of the $10,000 should Natasha report as gross income?

• A)$10,000
• B)$3,400
• C)$2,500
• D)$1,500
• E)zero

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Definitions:

Deferred Expenses

Assets created when purchased in the past before being used to generate revenues; need to be adjusted at the end of the period to reflect the amount of expense incurred by using the assets over time.

Assets

Resources owned or controlled by a business, entity, or individual, which are expected to produce economic value or future benefits.

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company at using its assets to generate revenue.