Scenario 13-7 Julia Prepares Tax Returns and Does Bookkeeping. Last Year Her

question 491

Multiple Choice

Scenario 13-7
Julia prepares tax returns and does bookkeeping. Last year her revenues from the tax and bookkeeping business were $150,000, and her expenses for the business were $15,000. When she started her tax and bookkeeping business, Julia gave up her supplemental job doing in-home pet sitting. She used to earn $10,000 per year from pet sitting. Assume that she incurred no costs for her pet sitting business.
-Refer to Scenario 13-7. Julia's accounting profits are

• A)$160,000.
• B)$150,000.
• C)$135,000.
• D)$125,000.

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Definitions:

Microlith

Small blades of flint or similar stone which were hafted together in wooden handles to make tools; widespread in the Mesolithic.

Old World

Refers to the parts of the world known to Europeans before the discovery of the Americas, including Africa, Europe, and Asia.

Mesolithic

The Middle Stone Age, a period in human history between the Paleolithic and Neolithic, characterized by the development of small stone tools and the beginning of a sedentary lifestyle.

Natufians

A prehistoric people who lived in the Levant, around 12,000 to 9,500 BC, known for the early adoption of sedentary lifestyles and agriculture.