Scenario 13-7 Julia Prepares Tax Returns and Does Bookkeeping. Last Year Her

question 491

Multiple Choice

Scenario 13-7
Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000, and her expenses for the business were $15,000. When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting business.
-Refer to Scenario 13-7. Julia's accounting profits are

• A)$160,000.
• B)$150,000.
• C)$135,000.
• D)$125,000.

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Definitions:

Comparable Businesses

Companies operating in the same or similar industry, used as benchmarks to assess relative performance, valuation, and strategic positioning.

Income

Money received, especially on a regular basis, for work or through investments.

Market

A place or system where buyers and sellers interact to exchange goods, services, or information, often determined by supply and demand.

Negotiation

The process of discussion aimed at reaching an agreement or compromise between two or more parties.