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NEW QUESTION: 1
Mosh, a sole proprietor, uses the cash basis of accounting. At the beginning of the current year, accounts
receivable were $25,000. During the year, Mosh collected $100,000 from customers. At the end of the
year, accounts receivable were $15,000. What was Mosh's gross taxable income for the current year?
A. $75,000
B. $100,000
C. $90,000
D. $110,000
Answer: B
Explanation:
Explanation
Choice "c" is correct. The facts state that cash collections from customers were $100,000 and as a cash
basis taxpayer this is the amount of Mosh's gross taxable income for the year. Note that according to the
formula BASE - we can determine the amount of sales = $90,000, but that would give us accrual, not cash
basis, income.
Choice "a" is incorrect. See explanation above.
Choice "b" is incorrect. $90,000 is the amount of sales that would be Mosh's taxable income if Mosh were
an accrual basis taxpayer.
Choice "d" is incorrect. See explanation above.
NEW QUESTION: 2
An international organization has decided to move its treasury operations to the head office
in Paris, France. The company's goal is to establish the treasury as the primary provider of banking services and all company financing. What would the new proposal be an example of?
A. An outsourced shared service center
B. A hybrid treasury structure
C. A decentralized and a re-engineered organization
D. An in-house bank and a centralized organization
Answer: D
NEW QUESTION: 3
Business Intelligence, among other things, refer to the technology that supports this kind of analysis.
A. TRUE
B. FALSE
Answer: A
