Wang Company Had the Following Transactions During 2021

question 61

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
-Purchased airline tickets for $600 in December for a trip to take place in 2022
What is Wang's 2021 net income using cash basis accounting?

• A)$1,600
• B)$2,800
• C)$13,000
• D)$2,200

Acquire knowledge on structuring claim messages to effectively convey issues and justify requests.

Understand and identify the components of the statement of cash flows, including operating, investing, and financing activities.

Calculate and analyze cash flow from operations using both the direct and indirect methods.

Recognize and prepare noncash investing and financing activities.

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Definitions:

Psychological Influences

Factors that affect mental processes and behavior, including emotions, attitudes, thoughts, and social dynamics.

Endocrine System

A collection of glands that produce hormones regulating metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood, among other things.

Body Tissues

Groups of similar cells that perform specific functions within an organism, including muscle, nerve, epithelial, and connective tissues.

HPA Axis

The hypothalamic-pituitary-adrenal axis, a complex system of interactions between three endocrine glands, central to the body's response to stress.