Pat's Custom Tuxedo Shop Maintains Its Records on the Cash

question 79

Multiple Choice

Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,000 in tailoring fees, and paid $14,000 in expenses. Depreciation expense totaled $2,000. Accounts receivable increased $1,500, supplies increased $4,000, and accrued liabilities increased $2,500. Pat's accrual basis net income was:

• A) $18,000.
• B) $34,000.
• C) $23,000.
• D) $29,000.

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Definitions:

Intertubercular Sulcus

A groove in the humerus bone that accommodates part of the biceps muscle tendon.

Biceps Brachii

A muscle of the upper arm that flexes the elbow and rotates the forearm.

Pectoral Girdle

The skeletal framework of the shoulder region that supports arm movement, consisting of the scapulae and clavicles.

Clavicles

Long bones that serve as a strut between the shoulder blade and the sternum, also known as collarbones.