The Following Is Selected Information from Monty Corporation for the Fiscal

question 61

Multiple Choice

The following is selected information from Monty Corporation for the fiscal year ending October 31 2016. $\begin{array}{lr}\text { Cash received from customers } & \$ 300,000 \\\text { Revenue recognized } & 378,000 \\\text { Cash paid for expenses } & 180,000 \\\text { Cash paid for computers on November } 1,2015 \text { that will be used } & \\\quad \text { for } 3 \text { years (annual depreciation is } \$ 15,000 \text { ) } & 45,000 \\\text { Expenses incurred, including interest, but excluding any depreciation } & 230,000 \\\text { Proceeds from a bank loan, part of which was used to pay for } & \\\text { the computers } & 100,000\end{array}$
Based on the accrual basis of accounting what is Monty Corporation's net income for the year ending October 31 2016?

• A) $75000.
• B) $105000.
• C) $133000.
• D) $148000.

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Definitions:

Large Numbers

Numerical values that are significantly larger than those commonly encountered in everyday life.

Executive Function

Higher-level cognitive processes that enable an individual to plan, organize, strategize, remember details, and manage time and space efficiently.

Higher-Level Cognitive Processes

Refers to complex mental functions such as reasoning, problem-solving, and planning.

Supervising

The act of overseeing and directing the performance of tasks or activities, typically carried out by a person in a position of authority.