Kelly Company Experienced the Following Events During Its First Accounting

question 93

Multiple Choice

Kelly Company experienced the following events during its first accounting period. (1) Issued common stock for $10,000 cash.
(2) Earned $8,000 of cash revenue.
(3) Paid $1,000 cash to purchase land.
(4) Paid cash dividends amounting to $500.
(5) Paid $4,400 of cash expenses.
Based on this information the amount of net income is

• A)$2,100.
• B)$2,600.
• C)$3,600.
• D)$5,600.

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Definitions:

Departments

Distinct units within an organization, each focused on a specific area of function, like marketing or finance.

Work Units

Groups or teams within an organization designated to perform specific tasks or functions.

Organisational Strength

The unique capabilities or advantages that give an organization a competitive edge or help it achieve its objectives.