Mama's Pizza Shoppe maintains its records on the cash basis. During 20x2, Mama's collected $73,900 from customers and paid $20,000 in expenses. Depreciation expense of $4,200 would have been recorded on the accrual basis. Over the course of the year, accounts receivable increased $5,200, prepaid expenses decreased $1,200, and accrued liabilities decreased $2,600. Mama's accrual-basis net income was: $56,300. $43,100. $98,100. $51,100.
Mama's Pizza Shoppe maintains its records on the cash basis. During 20x2, Mama's collected $73,900 from customers and paid $20,000 in expenses. Depreciation expense of $4,200 would have been recorded on the accrual basis. Over the course of the year, accounts receivable increased $5,200, prepaid expenses decreased $1,200, and accrued liabilities decreased $2,600. Mama's accrual-basis net income was: $56,300. $43,100. $98,100. $51,100.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Mama's Pizza Shoppe maintains its records on the cash basis. During 20x2, Mama's collected $73,900 from customers and paid $20,000 in expenses.
$56,300.
$43,100.
$98,100.
$51,100.
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