Wilde Company earned revenues of $170,000 in cash and $230,000 on account during 2018.Of the $230,000 on account,$79,000 was collected in cash in 2018 and the rest in 2019.The company incurred expenses of $145,000 on account in 2018 and made cash payments of $100,000 towards the expenses in 2018.What is net income in 2018 under cash-basis accounting?
A) $130,000
B) $70,000
C) $149,000
D) $255,000
Correct Answer:
Verified
Q21: Cash-basis accounting does NOT record:
A)purchase of supplies
Q22: Expenses are the costs of assets used
Q23: The expense recognition principle recognizes expenses in
Q24: The requirement to report accounting information at
Q25: On July 25,Henry Company's accountant prepared a
Q27: Under the revenue recognition principle,you can recognize
Q28: An interim period used for reporting purposes
Q29: Under cash-basis accounting,cash receipts are treated as
Q30: Which of the following statements regarding the
Q31: Cash-basis accounting does NOT record:
A)receipt of cash
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