Jessica Sampson is running a small consultancy business. For the current year, she had the following transactions: She collected fees from clients of $125,000She had debtors at the start of the tax year of $10,000She has debtors of $45,000 at the end of the tax yearDuring the year she paid expenses of $77,000 and has $12,000 in accounts payable at year end.Jessica is currently operating on a cash basis. Jessica’s taxable income for the current year is: Select one:$125,000None of these$83,000$71,000$48,000
Jessica Sampson is running a small consultancy business. For the current year, she had the following transactions: She collected fees from clients of $125,000She had debtors at the start of the tax year of $10,000She has debtors of $45,000 at the end of the tax yearDuring the year she paid expenses of $77,000 and has $12,000 in accounts payable at year end.Jessica is currently operating on a cash basis. Jessica’s taxable income for the current year is: Select one:$125,000None of these$83,000$71,000$48,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Jessica Sampson is running a small consultancy business. For the current year, she had the following transactions:
She collected fees from clients of $125,000
She had debtors at the start of the tax year of $10,000
She has debtors of $45,000 at the end of the tax year
During the year she paid expenses of $77,000 and has $12,000 in accounts payable at year end.
Jessica is currently operating on a cash basis.
Jessica’s taxable income for the current year is:
Select one:
$125,000
None of these
$83,000
$71,000
$48,000
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