Solution: Revenue for June was $99,000, of which $92,000 was collected in cash. Expenses for June were $87,000, of which $84,000 were paid in cash. Dividends declared and paid during June were $16,000. Net income or net loss for June, measured by the accrual basis, was: a. $8,000 net loss. b. $4,000 net loss. c. $8,000 net income. d. $12,000 net income.

Solution: Revenue for June was $99,000, of which $92,000 was collected in cash. Expenses for June were $87,000, of which $84,000 were paid in cash. Dividends declared and paid during June were $16,000. Net inco

Problem

Revenue for June was $99,000, of which $92,000 was collected in cash. Expenses for June were $87,000, of which $84,000 were paid in cash. Dividends declared and paid during June were $16,000. Net income or net loss for June, measured by the accrual basis, was:

a. $8,000 net loss.

b. $4,000 net loss.

c. $8,000 net income.

d. $12,000 net income.