Alex Is a Calendar-Year Sole Proprietor

question 4

Multiple Choice

Alex is a calendar-year sole proprietor.He began business on December 1,this year.He uses the accrual method of accounting.Alex had the following collections in December: • Collected $7,000 in December,from clients who paid cash for services to be performed next year.
• Collected $5,000 in December,for services performed during December; deposited in an operating account on December 31,this year.
• Collected $12,000 in December; on accounts receivable for services performed in December; deposited in operating account on January 2,next year.
What is the amount Alex must include in his income for December?

• A)$7,000
• B)$12,000
• C)$17,000
• D)$24,000

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Definitions:

Counterarguments

Arguments presented to oppose or refute another argument, critical in enhancing the depth of debate or reasoning.

Argumentative Essay

A genre of writing that requires the author to investigate a topic; collect, generate, and evaluate evidence; and establish a position on the topic in a concise manner.

Compatibilism

The philosophical belief that free will and determinism are compatible ideas, and it is possible to believe in both without being logically inconsistent.

Indeterminism

The theory that not every event is determined by preceding events and natural laws, suggesting that free will and chance play a role.