In Its First Year of Business,Wok 'N' Roll,Inc

question 24

Multiple Choice

In its first year of business,Wok 'n' Roll,Inc.earned $100,000 of revenues of which $80,000 was collected.It also incurred $90,000 in expenses for which $80,000 was paid.Which of the following statements are correct?

• A) Wok 'n' Roll should use cash basis accounting for external reporting purposes as required under GAAP and IFRS.
• B) Wok 'n' Roll should report net income of $10,000 for external reporting purposes.
• C) Wok 'n' Roll should report $0 net income for external reporting purposes.
• D) Wok 'n' Roll should report net income of $20,000 for external reporting purposes.

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Definitions:

Cervical Cancer

A type of cancer that occurs in the cervix, often caused by certain strains of HPV.

HPV

HPV stands for Human Papillomavirus, a DNA virus from the papillomavirus family that can lead to several infections, including those that cause warts and are associated with certain cancers.

HPV Test

A medical test that screens for the presence of human papillomavirus, a virus linked to the development of cervical cancer and other conditions.

Pap Test

A procedure in which cells are scraped from the cervix and examined under a microscope to detect cervical cancer and changes that may lead to cervical cancer.