Use the Information Given Below to Answer the Following Questions

question 6

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.
-What would the profit be if cash accounting rather than accrual accounting were used?

• A) $130 000
• B) $110 000
• C) $380 000
• D) $730 000.

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Definitions:

Preoperational Stage

A stage in Piaget’s theory of cognitive development, occurring from about 2 to 7 years of age, during which children learn through pretend play but struggle with logic and understanding others' perspectives.

Egocentrism

A cognitive bias that leads individuals to view the world solely from their own perspective, often accompanied by a lack of empathy for others' views or feelings.

Cognitive Development

The process by which individuals acquire, construct, and use mental abilities and skills over time.

Autism Spectrum Disorder

A developmental disorder that affects communication and behavior, characterized by difficulties in social interaction and communication and by restricted or repetitive patterns of thought and behavior.