90 The following is selected information from Alpha-Beta-Gamma Corporation for the fisca year ending October 31, 2017. Cash received from customers Revenue earned €600,000 660,000 340,000 Cash paid for expenses Cash paid for computers on November 1, 2016 that will be used for 3 years (annual depreciation is $32,000) Expenses incurred, including interest, but excluding any depreciation 400,000 Proceeds from a bank loan, part of which was used to pay for the computers 96,000 200,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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90
The following is selected information from Alpha-Beta-Gamma Corporation for the fiscal
year ending October 31, 2017.
Cash received from customers
Revenue earned
€600,000
660,000
340,000
Cash paid for expenses
Cash paid for computers on November 1, 2016 that will be used
for 3 years (annual depreciation is $32,000)
Expenses incurred, including interest, but excluding any depreciation 400,000
Proceeds from a bank loan, part of which was used to pay for
the computers
96,000
200,000
Based on the accrual basis of accounting, what is Alpha-Beta-Gamma Corporation's net
income for the year ending October 31, 2017?
a. €388,000.
b. €228,000.
C. €124,000.
d. €260,000.
Transcribed Image Text:90 The following is selected information from Alpha-Beta-Gamma Corporation for the fiscal year ending October 31, 2017. Cash received from customers Revenue earned €600,000 660,000 340,000 Cash paid for expenses Cash paid for computers on November 1, 2016 that will be used for 3 years (annual depreciation is $32,000) Expenses incurred, including interest, but excluding any depreciation 400,000 Proceeds from a bank loan, part of which was used to pay for the computers 96,000 200,000 Based on the accrual basis of accounting, what is Alpha-Beta-Gamma Corporation's net income for the year ending October 31, 2017? a. €388,000. b. €228,000. C. €124,000. d. €260,000.
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