La More Company Had the Following Transactions During 2013

question 134

Multiple Choice

La More Company had the following transactions during 2013.
-Sales of $4,500 on account
-Collected $2,000 for services to be performed in 2014
-Paid $1,325 cash in salaries
-Purchased airline tickets for $250 in December for a trip to take place in 2014
What is La More's 2013 net income using cash basis accounting?

• A) $5,175
• B) $675
• C) $4,925
• D) $425

---

Definitions:

Liquidated Debts

Debts for which the amount owed is known and agreed upon by all parties involved.

Unliquidated Debts

Unliquidated debts refer to obligations or claims for which the exact monetary value has not been determined, often pending further assessment or legal resolution.

Technical Consideration

Specific technical factors or details that are taken into account in the assessment or development of a project, product, or system.

Promissory Estoppel

A legal principle that enforces a promise when someone else has reasonably relied on that promise to their detriment, even if a formal contract does not exist.