Crue Company Had the Following Transactions During 2015

question 162

Multiple Choice

Crue Company had the following transactions during 2015:
-Sales of $4,500 on account
-Collected $2,500 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 cash basis accounting?

• A)$625.
• B)$875.
• C)$5,125.
• D)$5,375.

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Definitions:

Portfolio Value

The total market value of all the investments held by an individual or institutional investor.

S&P E-Mini Futures

Futures contracts that represent a portion of the standard S&P futures contracts, allowing for investment in the S&P 500 with less capital.

Listed Price

The price at which a product, security, or asset is listed for sale.

Futures Contract

A standardized legal agreement to buy or sell an asset at a predetermined price at a specified time in the future.