Answer:
the correct answer is accrual-basis
Explanation:
"according to the accrual-basis method of accounting, revenues are recognized when they are earned"
good luck
Answer:
A. profit.
Explanation:
We know,
Net Income (profit) = Sales revenue - the cost of goods sold and operating expenses
Here,
The Ice Cream shop made $100,000 on sales revenue. However, the expenses of the shop include supplies and factory space, i.e., rent expense is $75,000.
Therefore, Net Income (profit) = $100,000 - $75,000 = $25,000
Since the sales revenue exceeds the expenses, the company gets a profit. So, <em>option A</em> is the answer.
