As of December 31,2015,Mason Company had $500 cash.During 2016,Mason earned $1,200 of cash revenue and paid $800 of cash expenses.The amount of cash shown on the 2016 balance sheet would be

Question

Quizplus · Accepted Answer

The cash at the end of 2016 is calculated by adding the cash revenue earned ($1,200) to the beginning cash balance ($500) and then subtracting the cash expenses paid ($800). This results in $500 + $1,200 - $800 = $900.

As of December 31,2015,Mason Company Had $500 Cash