Bill Operates a Proprietorship Using the Cash Method of Accounting

question 62

Multiple Choice

Bill operates a proprietorship using the cash method of accounting, and this year he received the following payments:  
-$100 in cash from a customer for services rendered this year
-a promise to pay $200 from a customer for services rendered this year
-tickets to a football game worth $250 as payment for services performed last year
-a check for $170 for services rendered this year that Bill forgot to cash
How much income should Bill realize on Schedule C?

• A) $100
• B) $300
• C) $350
• D) $270
• E) $520

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Definitions:

Monitoring the Future

A long-term study that tracks the behaviors, attitudes, and values of American secondary school students, college students, and young adults.

Research Design

The overall strategy that a researcher chooses to integrate the different components of the study in a coherent and logical way, thereby ensuring effective address of the research problem.

Positive Correlation

A relationship between two variables in which both variables move in the same direction, meaning that as one variable increases, the other one also increases, or as one decreases, the other does as well.

College Students

College students are individuals enrolled in a college or university to pursue a degree or certificate in higher education.