MGC IncReported $50,000 of Net Income for 20x2

question 69

Multiple Choice

MGC Inc.reported $50,000 of net income for 20x2.The following deferrals and accruals were not recorded in the 20x1 and 20x2 adjusting entries: MGC's correct 20x2 income was:

• A) $51,300
• B) $50,500
• C) $49,300
• D) $48,500

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Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country’s borders in a specific time period, used as a broad measure of economic performance.

Percentage Change

A mathematical calculation that shows how a quantity has changed over time as a proportion of the initial quantity, often used to measure growth or decline.

Inventory Investment

The stock of unsold goods held by a company during a given period, indicating the level of production that goes into inventories.

Gross Investment

represents the total amount spent on purchases of new capital and on replacing depreciated capital within an economy during a specified period.