The Income Statement for the Month of June 2016 of Snap

question 9

Multiple Choice

The income statement for the month of June 2016 of Snap Shot Inc. contains the following information: $\begin{array}{lr}\text { Revenues } &&\$7,300 \\\text { Expenses: } & \\\text { Salaries and Wages Expense } & \$ 3,000 \\\text { Rent Expense } & 1,300 \\\text { Advertising Expense } & 700 \\\text { Supplies Expense } & 200 \\\text { Insurance Expense } & 100 \\\quad \text { Total expenses } &&5,300 \\\text { Net income } &&\$2,000\end{array}$ The entry to close Income Summary to Owner's Capital includes

• A) a debit to Revenues for $7300.
• B) credits to Expenses totalling $5300.
• C) a credit to Income Summary for $2000
• D) a credit to Owner's Capital for $2000.

Identify the requirements for deducting charitable contributions.

Understand the implications of foreign taxes paid for deductions or credits.

Recognize the specific deductions available for job hunting and unreimbursed employee business expenses.

Understand the timing rules related to the deduction of contributions and expenses.

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Definitions:

Acheulean Tool Tradition

An archaeological industry of stone tool manufacture characterized by distinctive oval and pear-shaped hand-axes associated with early humans.

Hand Axe

A prehistoric stone tool, often bifacially flaked to a point or edge, used by early humans for chopping, cutting, and as a general utility tool.

Neandertals

An extinct species or subspecies of archaic humans who lived in Eurasia until about 40,000 years ago, known for their robust build and large brain capacity.

Genus

In the system of plant and animal classification, a group of like species.