ACC 557 TUTOR Learn by Doing/acc557tutor.com ACC 557 TUTOR Learn by Doing/acc557tutor.com | Page 21

Balance sheet accounts are understated and income statement
accounts are understated.
Balance sheet accounts are overstated and income statement accounts
are overstated.
Balance sheet accounts are understated and income statement
accounts are overstated.
Balance sheet accounts are overstated and income statement accounts
are understated.
Multiple Choice Question 67
Crue Company had the following transactions during 2013:
• Sales of $4,500 on account
• Collected $2,000 for services to be performed in 2014
• Paid $1,625 cash in salaries
• Purchased airline tickets for $250 in December for a trip to take
place in 2014
What is Crue’s 2013 net income using cash basis accounting?
$375.
$4,875.
$4,625.
$125.
Multiple Choice Question 64
Which statement is correct?