Before Any Month-End Adjustments Are Made,the Net Income of Bennett

question 30

Multiple Choice

Before any month-end adjustments are made,the net income of Bennett Company is $76,000.The following adjustments are necessary: office supplies used,$3,160;services performed for clients but not yet recorded or collected,$3,640;interest accrued on note payable to bank,$3,040.After adjusting entries are made for the items listed above,Bennett Company's net income will be:

• A)$66,160.
• B)$78,560.
• C)$73,440.
• D)$76,000

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Definitions:

Remeasured

Adjusted or recalculated, often in the context of converting the value of foreign currency transactions or financial statements into a functional currency.

Historical Exchange Rate

The exchange rate at which a foreign currency transaction was completed, used to convert values to a presentation currency for reporting purposes.

Common Stock

Equity securities that represent ownership in a corporation, providing voting rights and a share in the company's profits through dividends.

Foreign Subsidiary

A company that is owned or controlled by another company (parent company) and is located in a country different from where the parent company is headquartered.