Wang Company Had the Following Transactions During 2022: Sales

question 169

Multiple Choice

Wang Company had the following transactions during 2022: Sales of $10800 on account
Collected $4800 for services to be performed in 2023
Paid $2600 cash in salaries for 2017
Purchased airline tickets for $600 in December for a trip to take place in 2023
What is Wang's 2022 net income using accrual accounting?

• A)$8800
• B)$13600
• C)$13000
• D)$8200

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Definitions:

Two Months

A period of approximately sixty days or the duration covering two consecutive calendar months.

Mail And Telephone Order Rule

A Federal Trade Commission regulation requiring businesses to ship orders within the timeframe stated in their ads or within 30 days if no time is specified.

Option Notice

A formal communication specifying a choice or requirement to take an action, especially in contracts or agreements.

Dangerous Per Se Rule

A legal doctrine that an act, by its nature, is inherently dangerous and can lead to liability without the need to prove negligence.