Mave CorpSells $5,000 of Goods on Account in the Current Year

question 74

Multiple Choice

Mave Corp.sells $5,000 of goods on account in the current year and collects $3,000 of this.It incurs $3,500 in expenses on account during the current year and pays $2,000 of them.Mave would report what amount of profit under the cash and accrual bases of accounting, respectively?

• A)$1,500 on the cash basis and $2,000 on the accrual basis
• B)$1,000 on the cash basis and $1,500 on the accrual basis
• C)$3,500 on the cash basis and $1,000 on the accrual basis
• D)$3,000 on the cash basis and $3,500 on the accrual basis

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Definitions:

Naturalistic Observation

A research method involving observing subjects in their natural environment without interference.

Adult Participants

Individuals over the age of majority, often involved in studies, research, or activities requiring legal adulthood.

Survey

A descriptive research method in which researchers use interviews and/or questionnaires to gather information about the attitudes, beliefs, experiences, or behaviors of a group of people.

Naturalistic Observation

A study approach where participants are monitored in their usual environment with no alterations made by the researcher.