Given the Data Below for a Firm in Its First

question 168

Multiple Choice

Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting. $\begin{array}{lr}\text { Cash received from customers } & \$ 48,000 \\\text { Accounts receivable } & 12,000 \\\text { Cash paid for expenses } & 26,000 \\\text { Accounts payable (related to expenses) } & 3,000 \\\text { Prepaid rent for next period } & 7,000\end{array}$

• A) $22,000
• B) $31,000
• C) $24,000
• D) $15,000

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Definitions:

Normal Distribution

A bell-shaped probability distribution that is symmetric about the mean, describing how continuous data is dispersed around the average value.

Standard Deviation

A gauge for determining the level of difference or scattering in a series of amounts.

Mean High Temperature

The average of the highest temperatures observed over a specified period.

Normal Distribution

A symmetric, bell-shaped distribution of values in which the mean, median, and mode are all equal and located at the center of the distribution.