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

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