Wang Company Had the Following Transactions During 2021

question 85

Multiple Choice

Wang Company had the following transactions during 2021:

-Sales of $10,800 on account
-Collected $4,800 for services to be performed in 2022
-Paid $2,600 cash in salaries for 2021
-Purchased airline tickets for $600 in December for a trip to take place in 2022
What is Wang's 2021 net income using accrual accounting?

• A)$8,800
• B)$13,600
• C)$13,000
• D)$8,200

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Definitions:

Tissue Fluid

A fluid that surrounds the cells in tissues, providing them with nutrients and removing waste, essentially the extracellular fluid.

Popliteal

Pertaining to the area behind the knee where blood vessels and nerves pass.

Back of Knee

The popliteal area; the region behind the knee joint where the femur, tibia, and fibula meet with ligaments and tendons.

Cubital

Pertaining to the elbow or the area around the elbow.