Springer Corporation Had the Following Transactions in August: Earned $2,000

question 220

Multiple Choice

Springer Corporation had the following transactions in August: Earned $2,000 of revenues on account; collected $4,000 from a customer for services provided last month; incurred $600 of repair expense and paid cash; paid $200 for rent that it owed from the previous month.
What is the net income in August?

• A) $600
• B) $4,000
• C) $5,400
• D) $1,400

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Definitions:

Perfect Tender Rule

A principle in commercial law that requires goods delivered under a sales contract to exactly meet the terms of the contract in quality, quantity, and manner of delivery.

Rightfully Reject

pertains to the legitimate refusal of an offer, goods, or services that do not meet contractual or predetermined criteria or standards.

Small Dent

A minor indentation or damage on a surface, typically referring to physical objects like vehicles.

Tender of Delivery

The act of offering goods for delivery to a buyer in accordance with a sales contract.