Todd Operates a Business Using the Cash Basis of Accounting

question 118

Multiple Choice

Todd operates a business using the cash basis of accounting. At the end of last year, Todd was granted permission to switch his sales on account to the accrual method. Last year, Todd made $420,000 of sales on account, and $64,000 was uncollected at the end of the year. What is Todd's §481 adjustment for this year?

• A)Increase income by $420,000
• B)Increase income by $16,000
• C)Increase expenses by $64,000
• D)Increase expenses by $420,000
• E)Todd has no §481 adjustment this year.

Comprehend the nature and impact of the hidden curriculum in educational systems.

Recognize the significance of rites of passage and other social ceremonies in cultural and individual development.

Evaluate the relationship between societal expectations and individual behavior through concepts such as the self-fulfilling prophecy and the Thomas theorem.

Discern the variability and significance of life stages across cultures and historical periods.

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Definitions:

VisiCalc

The first spreadsheet computer program for personal computers, which prompted the growth of the home computer as a business tool through its financial modeling capabilities.

Operating System

A program that controls computer hardware and software assets, offering universal services for various computer applications.

IBM PCs

A reference to the series of personal computers released by IBM starting in 1981, which set the standard for PC architecture.

1980

A year marked by significant events, both culturally and historically, including the eruption of Mount St. Helens and the release of the video game Pac-Man.