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:

Late Payment Surcharge

A fee imposed for not paying a bill by its due date.

Framing

The manner in which information is presented or communicated, which can influence understanding, decisions, and perceptions.

Intuition

The ability to understand something instinctively, without the need for conscious reasoning.

Rationality

The quality of being based on or in accordance with reason or logic.