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:

Preschool Years

A critical period in early childhood development, typically ranging from ages 3 to 5, before the commencement of formal schooling.

Analytical Intelligence

One of the three types of intelligence in Robert J. Sternberg's triarchic theory of intelligence, focusing on the ability to analyze, evaluate, judge, or compare and contrast information.

Creative Intelligence

The aspect of intelligence involved in the ability to think in new and novel ways and to find creative solutions to problems.

Applied Intelligence

The use of cognitive abilities to solve real-world problems and adapt to new situations.