The Following Is Selected Information from L Corporation for the Fiscal

question 105

Multiple Choice

The following is selected information from L Corporation for the fiscal year ending October 31 2022. $\begin{array} { | l | r | } \hline \text { Cash received from customers } & \$ 300,000 \\\hline \text { Revenue recognized } & 440,000 \\\hline \text { Cash paid for expenses } & 170,000 \\\hline \begin{array} { c } \text { Cash paid for computers on November 1, 2021 that will } \\\text { be used for } 3 \text { years }\end{array} & 48,000 \\\hline \begin{array} { l } \text { Expenses incurred including any depreciation }\end{array} &216,000 \\\hline \begin{array} { l } \text { Proceeds from a bank loan, part of which was used to } \\\text { pay for the computers }\end{array} &100,000 \\\hline\end{array}$ Based on the accrual basis of accounting what is L Corporation's net income for the year ending October 31 2022?

• A)$254000
• B)$224000
• C)$208000
• D)$270000

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Definitions:

Preserve Confidentiality

To protect information from being disclosed to unauthorized parties, ensuring that privacy and secrecy are upheld.

Litigation File

The collection of documents, evidence, and correspondence related to a specific legal case being prepared for or undergoing litigation.

Research Results

The findings or outcomes derived from systematic investigation aimed at discovering new knowledge or understanding.

Correspondences

Written communication or exchanges between parties, often formal and pertaining to professional, legal, or official matters.