Nelson Company Experienced the Following Transactions During Year 1, Its

question 18

Multiple Choice

Nelson Company experienced the following transactions during Year 1, its first year in operation.Acquired $12,000 cash by issuing common stockProvided $4,600 of services on accountPaid $3,200 cash for operating expensesCollected $3,800 of cash from customers in partial settlement of its accounts receivablePaid a $200 cash dividend to stockholdersWhat is the amount of net income that will be reported on the Year 1 income statement?

• A)$1,400
• B)$800
• C)$1,000
• D)$1,200

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Definitions:

Unlimited Financial Resources

Having access to an infinite amount of funds, allowing for unrestricted spending or investment.

Entrepreneurship

The activity of setting up a business or businesses, taking on financial risks in the hope of profit.

Work Habits

The behaviors and practices that individuals routinely engage in during their professional tasks, affecting productivity and job performance.

Believing

involves accepting something as true or having confidence in the truth, existence, or reliability of something without direct proof.