Yowell Company Began Operations on January 1, Year 1

question 42

Multiple Choice

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions: 1) issued stock for $40,0002) borrowed $25,000 from its bank3) provided consulting services for $39,0004) paid back $15,000 of the bank loan5) paid rent expense for $9,0006) purchased equipment costing $12,0007) paid $3,000 dividends to stockholders8) paid employees' salaries for work completed during the year, $21,000
What is Yowell's net income?

• A)$9,000
• B)$30,000
• C)$18,000
• D)$6,000

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Definitions:

VoIP

Voice over Internet Protocol, a technology that allows for voice communications and multimedia sessions over Internet Protocol networks.

Digital Phone

A telephone that uses digital signals to transmit voice communications, as opposed to traditional analog telephones.

Wired Network

A type of network where devices are connected using cables, offering more stability and security compared to wireless connections.

Traditional Phone Network

The landline telephone system, also known as the public switched telephone network (PSTN), which uses copper wires to transmit voice communication.