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

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Definitions:

Stratified Squamous Epithelium

A type of epithelial tissue composed of several layers of flat cells, designed to protect underlying tissues.

Gap Junction

Small channel between cells that allows the passage of ions and small molecules between cells; provides means of intercellular communication.

Hemidesmosomes

Structures that anchor cells to the underlying basement membrane, facilitating cell stability and structural integrity.

Tight Junction

Cell junctions in epithelial or endothelial cellular sheets that prevent the passage of molecules and ions between the cells.