Wang Company Had the Following Transactions During 2013

question 18

Multiple Choice

Wang Company had the following transactions during 2013:
-Sales of $10,800 on account
-Collected $4,800 for services to be performed in 2014
-Paid $3,100 cash in salaries
-Purchased airline tickets for $600 in December for a trip to take place in 2014
What is Wang's 2013 net income using cash basis accounting?

• A) $1,100
• B) $2,300
• C) $12,500
• D) $1,700

Calculate the impact of increased payment amounts on the amortization period of a loan.

Understand and calculate Total Debt Service Ratios and Gross Debt Service Ratios.

Determine the amount of principal paid off with structured payments over a specified period.

Understand the impact of compound interest on loans and amortization calculations.

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Definitions:

Legitimizes capitalism

The process or argument by which capitalism is defended or justified as the preferable economic system, often in relation to its ability to promote economic growth and freedom.

Monopolistic power

The ability of a single entity to control or dominate a market, setting prices and limiting competition.

French law

refers to the legal system established in France, which includes civil law traditions, statutory laws, and regulations governing various aspects of life and business in the country.

Industry level agreements

Collective bargaining agreements negotiated at the industry or sector level, affecting all workers and employers within that industry.