Use the Following Information to Calculate the Company's Accounting Net

question 127

Multiple Choice

Use the following information to calculate the company's accounting net income for the year.

• A) $300,000
• B) $240,000
• C) $125,000
• D) $120,000

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Definitions:

Accounts Receivable

Amounts owed to a company by customers for goods or services provided on credit.

Inventories

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Depreciation Expense

The allocated portion of the cost of a tangible or physical asset that is charged as an expense over its useful life.

Operating Activities

Activities directly related to the business's primary operations, such as selling products or services, which are reflected in the company's cash flow.