A Company Started Business on January 1, 2006

question 51

Multiple Choice

A company started business on January 1, 2006. At the end of 2006, the accounting records provided the following unadjusted and pre-tax amounts: Sales revenue (cash) , $186,000; cost of goods sold, $100,000; expenses (cash) , $40,000; accrued wages, $6,000; accrued rent revenue, $2,000; and a 40 percent average income tax rate. What was the net income on accrual basis?

• A) $22,800
• B) $25,200
• C) $27,600
• D) $30,000

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Definitions:

Leader-Member Exchange Theory

A theory that focuses on the relationship between leaders and their subordinates, proposing that the quality of these relationships influences many workplace outcomes.

Guidelines

Recommendations or principles that provide direction or advice on how something should be done or what actions should be taken in specific situations.

Leadership

The act of guiding or influencing a group towards achieving a common goal through inspiration, strategy, and direction.

Effective Followers

Individuals who actively support and execute the decisions of their leaders while also thinking critically and offering constructive feedback.