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

Learn about the significance of trade customs and practices in interpreting sales contracts.

Explore the implications of honesty and good faith in fulfilling contractual obligations.

Analyze the rights and obligations of parties in cases of delayed or partial deliveries in sales contracts.

Understand the remedies and actions available to parties when sales contracts are breached or obligations are not met.

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Definitions:

Union-Free Movement

A movement aimed at preventing unionization within organizations, often by promoting direct relationships between workers and management without the intermediation of unions.

Samuel Gompers

A key figure in American labor history, he was the founder of the American Federation of Labor (AFL) and a leading advocate for workers' rights and unionism in the late 19th and early 20th centuries.

Global Competition

The dynamic and competitive environment characterized by businesses from across the world vying for consumers, market share, and investment in the global marketplace.

American Labor Movement

The historical and ongoing efforts to protect and advance the rights of workers in the United States, often through union activism and legislative change.