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Given the Data Below for a Firm in Its First

Question 28

Multiple Choice

Given the data below for a firm in its first year of operation determine net income under the accrual basis of accounting.  Cash received from customers $45,000 Accounts receivable 12,000 Cash paid for expenses 26,000 Accounts payable (related to expenses)  3,000 Prepaid rent for next period 7,000\begin{array} { l r } \text { Cash received from customers } & \$ 45,000 \\\text { Accounts receivable } & 12,000 \\\text { Cash paid for expenses } & 26,000 \\\text { Accounts payable (related to expenses) } & 3,000 \\\text { Prepaid rent for next period } & 7,000\end{array}


A) $19000
B) $28000
C) $21000
D) $12000

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