Given the Data Below for a Firm in Its First

question 26

Multiple Choice

Given the data below for a firm in its first year of operation determine net income under the cash basis of accounting. $\begin{array}{c}\begin{array}{lll} \text { Revenue recognized}\\ \text { Accounts receivable}\\ \text { Expenses incurred}\\ \text { Accounts payable (related to expenses) }\\ \text { Supplies purchased with cash}\end{array}\begin{array}{r}\$ 19,000 \\3,000 \\7,250 \\750 \\1,800 \end{array}\end{array}$

• A)$9500
• B)$14000
• C)$7700
• D)$9950

---

Definitions:

Wrongfully Terminated

Being dismissed or fired from a job for illegal or improper reasons that violate company policy or law.

Franchisor

A franchisor is a business that grants licenses to franchisees for the operation of a business under the franchisor's brand and system.

Franchise

A type of business relationship where a franchisor allows a franchisee to use its trademark, products, and business model in exchange for a fee.

Sole Proprietorship

A business structure where a single individual both owns and operates the business, and is responsible for all its debts and liabilities.