La More Company Had the Following Transactions During 2021

question 161

Multiple Choice

La More Company had the following transactions during 2021:
-Sales of $9,000 on account
-Collected $4,000 for services to be performed in 2022
-Paid $3,750 cash in salaries for 2021
-Purchased airline tickets for $500 in December for a trip to take place in 2022
What is La More's 2021 net income using accrual accounting?

• A)$5,750
• B)$9,750
• C)$9,250
• D)$5,250

Identify the characteristics of cash and cash equivalents and the importance of managing them effectively.

Understand the role and principles of reconciliation in maintaining accurate cash records.

Interpret the functions and importance of documentation and verification in internal control.

Distinguish between acceptable internal control practices and practices that lead to a violation of internal control principles.

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Definitions:

Greenhouse Gas Accumulation

The build-up of greenhouse gases in the Earth's atmosphere, contributing to global warming and climate change.

Endangered Species Act

A law enacted to protect critically endangered species from extinction as a consequence of economic growth and development untempered by adequate concern and conservation.

In Situ Conservation

Conservation methods that preserve species in their natural habitats to ensure biodiversity.

Endangered Species List

A register maintained by various organizations that catalogues animal and plant species considered to be at risk of extinction.