During May,Many Happy Returns,Inc

question 68

Multiple Choice

During May,Many Happy Returns,Inc.earned $1,400,of which $1,000 was collected,and had expenses of $800,of which $700 was paid.Its net income equals:

• A) $600 using accrual accounting versus $300 using cash basis.
• B) $300 using accrual accounting versus $600 using cash basis.
• C) $700 using accrual accounting versus $200 using cash basis.
• D) $200 using accrual accounting versus $700 using bash basis.

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Definitions:

Base Fine

A fixed amount of money established as the starting point for fines related to violations or offenses, which can be adjusted based on specific circumstances.

Mala Prohibita

Acts that are crimes because legislation defines them as such, despite not being inherently evil or immoral.

Statutory Law

Law established by the enactment of legislation by a governing body, as opposed to case law or regulations promulgated by governmental agencies.

Common Law

A legal system based on judicial decisions and precedents, rather than codified laws.