Winter Company earned revenues of $170,000 in cash and $230,000 on account during 2016. Of the $230,000 on account, $66,000 was collected in cash in 2016 and the rest in 2017. The company incurred expenses of $105,000 in 2016 and made payments of $80,000 towards the expenses in 2016. What is net income in 2016 under accrual accounting?
A) $125,000
B) $295,000
C) $320,000
D) $400,000
Correct Answer:
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Q21: Cash-basis accounting does NOT record:
A)purchase of supplies
Q22: Expenses are the costs of assets used
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Q34: Accrual accounting records all of the following
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Q37: The revenue principle determines when to record
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