Glendale Corporation Had the Following Transactions in August: Earned $5,000

question 29

Multiple Choice

Glendale Corporation had the following transactions in August: Earned $5,000 of revenues on account; collected $5,000 from a customer for services provided last month; incurred $500 of repair expense and paid cash; paid $600 for rent that it owed from the previous month.
What is the net income in August?

• A)$500
• B)$5,000
• C)$9,500
• D)$4,500

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Definitions:

Stock Market

A public market for the trading of company stock and derivatives at an agreed price; it is a key indicator of the health of an economy.

Unpaid Leave

A period of time that an employee is allowed to be away from work without pay, often for personal, family, or medical reasons.

Employee Benefit

Compensation provided to employees in addition to their normal wages or salaries, such as health insurance, retirement plans, paid vacation, and life insurance.

Seniority

The concept of giving preference to employees with longer tenure in terms of promotions, pay raises, and other employment decisions.