Question

Given the data below for a firm in its first year of operation, determine net income under the accrual

Answer 1

Answer:

correct option is a. $11,750

Explanation:

given data

Revenue recognized = $19,000

Accounts receivable = 3,000

Expenses incurred = 7,250

Accounts payable =  750

Supplies purchased = 1,800

solution

we get here net income that is express as here

Net Income = Revenue recognized  - Expenses incurred  .........................1

put here value and we will get net income

Net Income = $19000 - $7250

Net Income = $11750

so here correct option is a. $11,750