TB 03-117 Picasso Art School's operating activities for thePicasso Art School's operating activities for the month of February are summarized in the following transactions:1. Provided $1,500 of instructional lessons.2. Received $2,100 cash from students-of which $1,200 is for lessons provided in February, and $900 is for lessons provided in January.3. Paid January's rental bill of $300. Received February's bill of $450 but did not pay.Determine Picasso Art School's Net Income for February using the accrual basis of accounting?Multiple Choice$1,050$900$750$1,800

Accrual basis of accounting: Accrual basis of accounting refers to recognizing the financial…

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Business

Accounting

Determine Picasso Art School's Net Income for February using the accrual basis of accounting?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

TB 03-117 Picasso Art School's operating activities for the
Picasso Art School's operating activities for the month of February are summarized in the following transactions:
1. Provided $1,500 of instructional lessons.
2. Received $2,100 cash from students-of which $1,200 is for lessons provided in February, and $900 is for lessons provided in January.
3. Paid January's rental bill of $300. Received February's bill of $450 but did not pay.
Determine Picasso Art School's Net Income for February using the accrual basis of accounting?
Multiple Choice
$1,050
$900
$750
$1,800

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