Crue Company Had the Following Transactions During 2015

question 53

Multiple Choice

Crue Company had the following transactions during 2015:
-Sales of $4,800 on account
-Collected $2,000 for services to be performed in 2016
-Paid $1,625 cash in salaries
-Purchased airline tickets for $250 in December for a trip to take place in 2016
What is Crue's 2015 net income using accrual accounting?

• A)$2,925.
• B)$3,175.
• C)$4,925.
• D)$5,175.

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Definitions:

Fluid-Filled Sac

A pouch within the body encased by a thin membrane containing liquid; it can occur in various tissues and organs.

Tendons

Fibrous connective tissues that attach muscles to bones, transmitting the force from muscle contraction to move the bone or structure.

Articular Cartilage

A smooth, white tissue that covers the ends of bones where they come together to form joints, helping reduce friction and absorb shock.

Epiphyses

The rounded end of a long bone, which is separated from the main bone by a growth plate during development and later fuses to allow growth in length.