Franco Is Owner and Operator of a Cleaning Service Who

question 51

Multiple Choice

Franco is owner and operator of a cleaning service who uses the accrual method of accounting.He receives the following payments on December 31,2016,the last business day of his tax year: ​
How much of the $11,400 collected by Franco on December 31 must be included in his 2016 gross income?

• A)$5,000
• B)$6,400
• C)$7,400
• D)$9,000
• E)$11,400

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Definitions:

Appendix

A supplementary material at the end of a book, document, or presentation that provides additional details or explanations.

Pharyngeal Tonsils

Two masses of lymphatic tissue located above the palatine tonsils; also called adenoids.

Nasopharynx

The portion of the pharynx behind the nasal cavity.

Palatine Tonsils

Two masses of lymphatic tissue located at the back of the throat.