Use the Information Given Below to Answer the Following Questions

question 28

Multiple Choice

Use the information given below to answer the following questions:
During 2012, a company makes credit sales of $600 000, of which $350 000 is collected at year-end. It pays $220 000 in expenses and owes $20 000 for electricity used during 2012.
-Profit according to accrual accounting is:

• A) $130 000
• B) $380 000
• C) $360 000
• D) $710 000.

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Definitions:

Remarried

The act of entering into marriage again after a divorce or the death of a spouse.

Wife Died

The occurrence of a spouse who is female passing away.

Defense of Marriage Act

A U.S. federal law enacted in 1996 that defined marriage for federal purposes as the union between one man and one woman, and allowed states to refuse to recognize same-sex marriages granted under the laws of other states. It was ruled unconstitutional in 2013.

Homosexuals

Individuals who are romantically or sexually attracted to people of their own sex; also known as gay for men and lesbian for women.