What is Ling's 2013 net income using accrual accounting?
A) ¥15,500.
B) ¥23,500.
C) ¥22,500.
D) ¥14,500.

Question

Quizplus · Accepted Answer

Ling's 2013 net income using accrual accounting is ¥15,500. This is because accrual accounting recognizes revenue when it is earned, regardless of when cash is received, and expenses when they are incurred, regardless of when cash is paid. In 2013, Ling earned ¥23,500 in revenue and incurred ¥8,000 in expenses. Therefore, Ling's net income for 2013 is ¥15,500.

What Is Ling's 2013 Net Income Using Accrual Accounting