During 2010,Sigma Company Earned Service Revenues Amounting to $700,000,of Which

question 107

Multiple Choice

During 2010,Sigma Company earned service revenues amounting to $700,000,of which $630,000 was collected in cash; the balance will be collected in January 2011.What amount should the 2010 income statement report for service revenues?

• A)$630,000
• B)$700,000
• C)$70,000
• D)$570,000

---

Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, representing true profitability.

Increase Production

The process of raising the output or quantity of goods and services produced by a firm or country.

Nonrefundable Ticket

A ticket purchase that cannot be returned for a refund, often cheaper than refundable options and common in air travel.

Remainder

The amount left over or remaining after division or allocation.