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During 2016,a Company Makes Credit Sales of $600 000,of Which

Question 1

Multiple Choice

During 2016,a company makes credit sales of $600 000,of which $350 000 is collected at year-end.It pays $220 000 in expenses and owes $20 000 for electricity used during 2016.What would the profit be if cash accounting rather than accrual accounting were used?


A) $130 000.
B) $110 000.
C) $380 000.
D) $730 000.

Correct Answer:

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