Sarah Receives a $15,000 Scholarship from City University

question 72

Multiple Choice

Sarah receives a $15,000 scholarship from City University.The university specifies that $8,000 is for tuition,books,supplies,and equipment for classes.The other $7,000 is for room and board.Sarah works ten hours per week as a grader,for which she is paid $7,500 for the year.Of the total amount received,Sarah must include the following amount in gross income

• A)$7,000.
• B)$7,500.
• C)$14,500.
• D)$22,500.

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Definitions:

Computerized Accounting System

An accounting information system that processes financial transactions and events as per GAAP (Generally Accepted Accounting Principles) using computer software.

Systems Design

The process of defining the architecture, components, interfaces, and data for a system to satisfy specified requirements.

Income Statement

A financial report that shows a company's revenues, expenses, and profits over a specific accounting period.

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The use of the Internet for performing business transactions.