The Following Data Relate to Swift Company for the Year

question 74

Multiple Choice

The following data relate to Swift Company for the year ended December 31,2012.Swift Company uses the accrual basis. $\begin{array}{llcc} \text {Sales on credit } &\$250,000 \\ \text {Cost of inventory sold on credit } &170,000\\ \text { Collections from customers } &220,000\\ \text { Purchase of inventory on credit } &150,000\\ \text { Payment for purchases } &140,000\\ \text { Selling expenses (accrual basis) } &40,000\\ \text { Payment for selling expenses } &45,0000\end{array}$

Which of the following amounts represents income for Swift Company for the year ended December 31,2012?

• A)$60,000
• B)$50,000
• C)$40,000
• D)$35,000
• E)$30,000

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Definitions:

Testator

An individual who has made a will or testament in which they name one or more persons to manage their estate and provide for the transfer of their property at death.

Nonprobate Property

Property that is not part of a probate estate.

Revision

The process of reviewing, editing, and updating documents or texts to correct or improve them.

Will

A legal document in which a person outlines how she wants her property to be distributed after her death.