Compute Lawrence's Accrual-Based Net Income for 2018

question 18

Multiple Choice

Compute Lawrence's accrual-based net income for 2018.

• A) $354,000.
• B) $329,500.
• C) $334,000.
• D) $265,000.
• E) $344,500.

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Definitions:

Advances and Loans

Financial assistance provided by a lender to a borrower, where the amount is expected to be repaid with or without interest.

Net Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Operating Activities

Transactions and events that enter into the determination of net profit or loss.

Interest Received

Income earned from investing in interest-bearing financial instruments or accounts, such as savings accounts, bonds, or loans.