Determine the Net Income of a Company for Which the Following

question 206

Multiple Choice

Determine the net income of a company for which the following information is available:

• A)$190,000
• B)$210,000
• C)$230,000
• D)$400,000
• E)$610,000

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed in the business within one year or within the normal operating cycle.

Investment

The allocation of resources, such as time, money, or effort, in expectation of future benefits or returns.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used, but not yet paid for.

Payables

Amounts owed by a company to suppliers or creditors for goods and services received.