4:38 PM @ 82%-. edugen.wiley.com Kimmel, Financial Accounting, 7e Help I System

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4:38 PM @ 82%-. edugen.wiley.com Kimmel, Financial Accounting, 7e Help I System Announcements (1 Unread) CALCULATOR PRINTER VERSION BACK NEXT Multiple Choice Question 82 Wang Company had the following transactions during 2013: Sales of $10,800 on account Collected $4,800 for services to be performed in 2014 Paid $3,100 cash in salaries for 2013 Purchased airline tickets for $600 in December for a trip to take place in 2014 What is Wang's 2013 net income using accrual accounting? O $13,100 $12,500 O $7,700 O $8,300 By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of 2 used SAVE FOR LATER SUBMIT ANSWER Earn Maximum Points available only if you answer this question correctly in your first attempt.

Explanation / Answer

Ans. C (option 3rd)   $7700 Net income = revnue - expenses 10,800 - 3,100 7,700 *In the accrual accounting system the revenues are recorded when they are earned, not when the cash is received and expenses are recorded in the period when they occur, not when the cash is paid.

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