William,a cash-basis sole proprietor,had the following receipts and disbursements for the current year:
For the current year,what amount should William report as net earnings from self-employment?

Question

William,a cash-basis sole proprietor,had the following receipts and disbursements for the current year: ​
 For the current year,what amount should William report as net earnings from self-employment?

Quizplus · Accepted Answer

Net earnings from self-employment is calculated as:
Gross receipts ($20,000) - Business expenses ($5,000) = Net earnings from self-employment ($15,000)

William,a Cash-Basis Sole Proprietor,had the Following Receipts and Disbursements for the Current