The Following Data Include All the Elements from Cambridge Company's

question 3

Multiple Choice

The following data include all the elements from Cambridge Company's income statement: $$\begin{array} { l r } \text { Administrative Expense } & \$ 873 \\\text { Cost of Goods Sold } & 3,615 \\\text { Gain on Sale of Securities } & 623 \\\text { Income Tax Expense } & 1,234 \\\text { Loss on Discontinued Operations } & 1,229 \\\text { Loss on Disposal of Equipment } & 237 \\\text { Revenue } & 8,771 \\\text { Selling Expense } & 1,425\end{array}$$ What is the amount of income from continuing operations for Cambridge Company?

• A) $3,244
• B) $2,621
• C) $2,010
• D) $3,481

---

Definitions:

Business Transaction

An economic event with a third party that is recorded in an organization's accounting system.

Accounting Records

Documents and books that keep track of the financial operations and transactions of an entity or individual, serving as evidence of financial performance and position.

Computer

An electronic device capable of processing, storing, and retrieving data, used for a wide range of tasks from computing to entertainment.

Double-Entry Bookkeeping System

An accounting technique which records each transaction in two accounts, ensuring the total debits equal total credits.