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During the month of March, Weimar World, a tax-preparation service, had the following transactions. • Billed $992,000 in reve

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Answer #1

Under accural basis of accounting revenue should be recognised in the period in which service is provided and it is earned irrespective of cash receipt and expenses should be recognised in the period in which it is incurred irrespective of cash payment.

Net income:

= Revenue earned - Expense incurred

= $992,000 - $388,000

= $604,000

Option a.

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