Jessica Sampson is running a small consultancy business. For the current year, she had the following transactions:

She collected fees from clients of $125,000

She had debtors at the start of the tax year of $10,000

She has debtors of $45,000 at the end of the tax year

During the year she paid expenses of $77,000 and has $12,000 in accounts payable at year end.

Jessica is currently operating on a cash basis.

Jessica’s taxable income for the current year is:

Select one:

$125,000

None of these

$83,000

$71,000

$48,000

Answer rating: 100% (QA)

Option A is correct 125000 Taxable profits are the ... View the full answer