Given the Data Below for a Firm in Its First

question 179

Multiple Choice

Given the data below for a firm in its first year of operation, determine net income under the cash basis of accounting. $$\begin{array} { l r } \text { Revenue earned } & \$ 16,000 \\\text { Accounts receivable } & 3,000 \\\text { Expenses incurred } & 7,250 \\\text { Accounts payable (related to expenses) } & 750 \\\text { Supplies purchased with cash } & 1,800\end{array}$$

• A) $6,500
• B) $11,000
• C) $4,700
• D) $6,950

Understand the theories and psychological effects of hypnosis, including dissociative theories.

Recognize the signs and effects of seasonal affective disorder and its seasonal pattern.

Analyze the relationship between sleep patterns and academic performance.

Understand the factors that influence the adjustment to different time zones and how jet lag can be mitigated.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, with voting rights and a share in profits through dividends.

Paid-In Capital

Paid-in capital is the amount of money a company has received from shareholders in exchange for shares of stock.

Par Value

The nominal or face value of a bond, share of stock, or other financial instrument, as stated by its issuer.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically with dividends that must be paid out before dividends to common stockholders.