Table 5-2 -Referring to Table 5-2, What Is the Net Income or
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question 136

Multiple Choice

Table 5-2 $$\begin{array} { | l | r | } \hline \text { Sales revenue } & \$ 382,000 \\\hline \text { Net sales revenue } & \$ 360,000 \\\hline \text { Gross margin } & 255,000 \\\hline \text { Operating expenses } & 132,000 \\\hline \text { Interest expense } & 30,000 \\\hline \text { Interest revenue } & 60,000 \\\hline\end{array}$$
-Referring to Table 5-2, what is the net income or net loss?

• A)net loss of $3,000
• B)net income of $30,000
• C)net loss of $30,000
• D)net income of $153,000

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Definitions:

Prepaid Insurance

An asset account representing insurance premiums that have been paid in advance and are gradually expensed over the period of coverage.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Adjusting Entry

A journal entry made at the end of an accounting period to record unbilled, uncollected, or unpaid transactions, ensuring the financial statements are accurate.