Crue Company Had the Following Transactions During 2022:

question 73

Multiple Choice

Crue Company had the following transactions during 2022:
Sales of $4,500 on account to 1.
Collected $2,500 for services to 1.
Paid $1,625 cash in salaries

Purchased airline tickets for $250 in December for a trip to take place in 2023
What is Crue's net income using cash-basis accounting?

• A)$625
• B)$875
• C)$5,125
• D)$5,375

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Definitions:

Transfer Prices

Prices charged for goods, services, or intangible property transferred between units of the same organization.

External Market Price

The price at which a product or service is sold in the open market to external customers, outside of the company or organization.

Producing Division

The producing division refers to a department or segment within a company responsible for the production of goods or services.

Decentralised Organisation

A type of organizational structure where decision-making is distributed among various levels and departments rather than being concentrated at the top.