The Following Is Selected Information from BT Corporation for the Month

question 103

Multiple Choice

The following is selected information from BT Corporation for the month ending April 30, 2022. $\begin{array}{lr}\text { Cash sales } & \$ 200,000 \\\text { Collections from Accounts Receivable } & 340,000 \\\text { Revenue recognized } & 400,000 \\\text { Cash paid for expenses } & 280,000 \\\text { Purchase of equipment on April } 1 \text { (annual depreciation is } \$ 12,000 \text { ) } & 40,000 \\\text { Expenses incurred (excluding any depreciation) } & 238,000 \\\text { Additional investment by owner } & 100,000 \\\text { Owner drawings } & 20,000\end{array}$ What is BT's net income for the month ending April 30, 2022?

• A) $90,000.
• B) $150,000.
• C) $161,000.
• D) $162,000.

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Definitions:

Golden Parachute

A substantial benefits package given to top executives if the company is taken over by another firm, and the executives are terminated as a result of the takeover.

Market Share

The portion of a market controlled by a particular company or product.

Flood Control System

involves infrastructure and strategic planning aimed at reducing or preventing the damage caused by excessive water levels, including dams, levees, and drainage systems.

Expected Loss

The anticipated amount of loss a party incurs due to risk, calculated as the sum of all possible losses each multiplied by the probability of that loss occurring.