Bill Operates a Proprietorship Using the Cash Method of Accounting

question 62

Multiple Choice

Bill operates a proprietorship using the cash method of accounting, and this year he received the following payments:  
-$100 in cash from a customer for services rendered this year
-a promise to pay $200 from a customer for services rendered this year
-tickets to a football game worth $250 as payment for services performed last year
-a check for $170 for services rendered this year that Bill forgot to cash
How much income should Bill realize on Schedule C?

• A) $100
• B) $300
• C) $350
• D) $270
• E) $520

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Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity can influence price, promoting efficiency and innovation.

Labor Union Membership

The status of being a member of an organization that represents workers' interests, including wages, working conditions, and benefits.

Union Member

An individual who belongs to a labor union, an organization that represents workers' interests in bargaining and negotiations with employers.

Right-to-work Laws

Legislation that prohibits compulsory union membership as a condition of employment in certain states or countries.