The Following Data Relate to Falcon Company for the Year

question 90

Multiple Choice

The following data relate to Falcon Company for the year ended December 31,2012.Falcon Company uses the cash basis. $\begin{array}{llcc} \text {Sales for cash } &\$180,000 \\ \text {Sales for credit } &190,000\\ \text { Cost of inventory sold } &210,000\\ \text { Collections from customers } &350,000\\ \text { Purchases of inventory on credit} &200,000\\ \text { Payment for purchases} &220,000\\ \text {Selling expenses (accual basis) } &60,000\\ \text { Payment for selling expenses } &70,000\end{array}$

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

• A)$90,000
• B)$80,000
• C)$70,000
• D)$60,000
• E)None of the answers are correct.

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Definitions:

New Republic

A term that can refer to a newly established republic or might be used as the name of a publication focusing on American politics, foreign policy, and culture.

Future of Slavery

Refers to the historical discussions and speculations on the persistence, form, and abolition of slavery.

Declaration of Independence

A document adopted on July 4, 1776, by the Second Continental Congress, declaring the thirteen American colonies independent from British rule.

Second Continental Congress

A convention of delegates from the Thirteen Colonies that started meeting in the spring of 1775, soon after the beginning of the American Revolutionary War.