Winter Company earned revenues of $150,000 in cash and $200,000 on account during 2018.Of the $200,000 on account,$63,000 was collected in cash in 2018 and the rest in 2019.The company incurred expenses of $115,000 in 2018 and made payments of $70,000 towards the expenses in 2018.What is net income in 2018 under accrual accounting?

Question

Quizplus · Accepted Answer

Revenue $150,000 + Revenue $200,000 - Expenses $115,000 = $235,000

Winter Company Earned Revenues of $150,000 in Cash and $200,000