Determine the Net Income of a Company for Which the Following

question 209

Multiple Choice

Determine the net income of a company for which the following information is available for the month of September. $\begin{array}{lr}\text { Service revenue } & \$ 300,000 \\\text { Rent expense } & 48,000 \\\text { Utilities expense } & 3,200 \\\text { Salaries expense } & 81,000\end{array}$

• A)$171,000.
• B)$252,000.
• C)$167,800.
• D)$263,800.
• E)$432,200.

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Definitions:

FIFO

An inventory valuation method where the first items purchased or produced are considered the first sold, standing for First-In, First-Out.

Receiving Report

a document that records the details of goods received from a supplier, used to match against purchase orders and invoices.

Inventory Control

A system used to oversee and manage the ordering, storage, and use of inventory in a business.

Initial Record

Initial record refers to the first entry of a transaction into the accounting system. This record is crucial for maintaining the accuracy and integrity of financial data.