Ask Question
21 August, 07:58

Given the data below for a firm in its first year of operation, determine net income under the cash basis of accounting. cash received from customers $48,000 accounts receivable 12,000 cash paid for expenses 26,000 accounts payable (related to expenses) 3,000 prepaid rent for next period 7,000

+2
Answers (1)
  1. 21 August, 08:15
    0
    The answer is $22,000

    Explanation:

    Cash basis accounting is a method of recording accounting transactions/events for revenue only when cash is received from customers and expenses only when cash payments are done by the business entity to suppliers.

    Net income = Cash received from customers $48,000 - cash paid for expenses 26,000

    Net income = $22,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Given the data below for a firm in its first year of operation, determine net income under the cash basis of accounting. cash received from ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers