Scottsdale Corp

question 31

Multiple Choice

Scottsdale Corp. received several invoices in the mail for oil changes performed on its company trucks during the last week of April. The total of the invoices was $800 and all are due on May 13. What entry should Scottsdale make at April 30 as a result of receiving the invoices?

• A) Debit Accounts Receivable and credit Cash for $800.
• B) Debit Maintenance Expense and credit Accounts Payable for $800.
• C) Debit Maintenance Expense and credit Cash for $800.
• D) Debit Prepaid Maintenance and credit Cash for $800.

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Definitions:

Standard Deduction

A fixed dollar amount that reduces the income on which you are taxed, varying by filing status and adjusted each year for inflation.

Joint Return

A combined tax return filed by married partners or certain partners in a civil union, pooling their incomes and deductions.

Taxable Income

Taxable income is the amount of income used to calculate how much tax an individual or a company owes to the government in a given tax year.

Standard Deduction

A fixed amount that taxpayers can subtract from their taxable income, reducing the tax they owe, without itemizing deductions.