Determine the Net Income of a Company for Which the Following

question 251

Multiple Choice

Determine the net income of a company for which the following information is available for the month of September. $$\begin{array} { l r } \text { Service revenue } & \$ 300,000 \\\text { Rent expense } & 48,000 \\\text { Utilities expense } & 3,200 \\\text { Salaries expense } & 81,000\end{array}$$

• A) $171,000.
• B) $252,000.
• C) $167,800.
• D) $263,800.
• E) $432,200.

---

Definitions:

Tort

A civil wrong that causes someone else to suffer loss or harm, resulting in legal liability for the person who commits the act.

Breach Of Trust

The failure of a trustee to act in accordance with the terms of the trust agreement or in the best interest of the beneficiaries.

Winding Up

The process of liquidating a company's assets and distributing the proceeds to the creditors and shareholders, ultimately leading to the dissolution of the company.

Selling Assets

The process of liquidating company assets for cash or other considerations, often done to meet financial obligations or as part of a strategic business restructuring.