Net Income Is Reported on the Income Statement at $25,000

question 133

Multiple Choice

Net income is reported on the income statement at $25,000. Adjusting entries for accrued revenues of $4,000 and unearned revenue earned during the current period of $1,500 were accidentally omitted. The correct net income is:

• A)$27,500.
• B)$22,500.
• C)$19,500.
• D)$30,500.

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Definitions:

Preoperational

A stage in Jean Piaget's theory of cognitive development during which children aged approximately 2 to 7 years old develop memory and imagination.

Formal Operational

A stage in Piaget's theory of cognitive development where individuals gain the ability to think abstractly, systematically, and logically.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, a concept typically developed during infancy.

Sensorimotor Substage

A phase in Piaget's theory of cognitive development, where infants learn through interacting with the world via their senses and actions.