The Correct Net Income for Sarah Corp

question 57

Multiple Choice

The correct net income for Sarah Corp. was $53,500. However, the company reported incorrect net income because beginning inventory was understated by $2,500, purchases were overstated by $2,000, and ending inventory was overstated by $2,000. What net income did Sarah Corp. report?

• A) $49,000
• B) $51,000
• C) $56,000
• D) $58,000

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Definitions:

Income Inequality

The uneven distribution of income within a population, often leading to social and economic disparities.

Trends

General directions in which something is developing or changing, often identified within markets, consumer behaviors, or technological advancements.

Income Inequality

An uneven spread of income among entities like individuals or households participating in an economy.

Wealth

The abundance of valuable resources or material possessions or the control of such assets.