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:

Bedpan

A shallow vessel used for toileting by patients who are bedridden or unable to access a toilet.

High-Fowler's

A bed position where the patient's head and trunk are elevated 60-90 degrees, often used to improve breathing or for feeding patients.

Undress

To remove clothing, often for the purpose of examination, treatment, or changing into a patient gown in a medical context.

Peripheral Neuropathy

A condition resulting from damage to the peripheral nerves, characterized by weakness, numbness, and pain, typically in the hands and feet.