Use the Following Information for Questions 63-64 $\bullet$ Sales of $4,500 on Account

question 90

Multiple Choice

Use the following information for questions 63-64.
Lamb Company had the following transactions during 2010.
$\bullet$ Sales of $4,500 on account
$\bullet$ Collected $2,000 for services to be performed in 2011
$\bullet$ Paid $625 cash in salaries
$\bullet$ Purchased airline tickets for $250 in December for a trip to take place in 2011

-What is Lamb's 2010 net income using cash basis accounting?

• A) $5,875
• B) $1,375
• C) $5,625
• D) $1,125

---

Definitions:

Regulatory Bodies

Organizations or agencies established by the government to oversee the practice of specific professions, industries, or activities to ensure compliance with laws and regulations.

Healthcare Professionals

Individuals who provide services related to the maintenance or improvement of health, including doctors, nurses, therapists, and pharmacists.

Professional Nursing Practice

The standards and ethical conduct that guide the practice and responsibilities of nurses in their care for patients.

American Association

A general term that could refer to any number of organizations in the United States formed for professionals, individuals, or businesses with shared goals or interests.