Given the Data Below for a Firm in Its First

question 28

Multiple Choice

Given the data below for a firm in its first year of operation determine net income under the accrual basis of accounting. $\begin{array} { l r } \text { Cash received from customers } & \$ 45,000 \\\text { Accounts receivable } & 12,000 \\\text { Cash paid for expenses } & 26,000 \\\text { Accounts payable (related to expenses) } & 3,000 \\\text { Prepaid rent for next period } & 7,000\end{array}$

• A)$19000
• B)$28000
• C)$21000
• D)$12000

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Definitions:

Cross-Border Merger

A transaction where companies from different countries merge to create a new entity or one absorbs the other, expanding their global footprint and operational reach.

Joint Venture

A business agreement between two or more parties to jointly undertake a specific project or business activity, sharing profits, losses, and control.

Ethnocentrism

The belief in the superiority of one's own cultural group, often accompanied by a disregard for other cultures.

Polycentric Attitude

An approach that recognizes and values the diversity and difference of various cultures and practices in international business.