Question 38 (2 points)

Which measure reflects profitability from normal operations and a key performance measure for predicting the future profit-generating ability of a company?

Question 38 options:

	Operating income
	Income before income taxes
	Net income
	Gross profit

Question 39 (2 points)

Ruby Co.s accounting records show a cash balance of $4,200. The October bank statement reports a cash balance of $2,300. The statement also reports bank service fees of $100 and interest earned on the Ruby Co's bank account of $20. Ruby Co. determined there were $1,180 of check outstanding and $3,000 of deposits outstanding. Select the correct journal entry to record the interest earned of $20 on Ruby Co.s books.

Question 39 options:

	Debit Cash $20 Credit Interest Revenue $20
	Debit Accounts Receivable $20 Credit Interest Revenue $20
	Debit Interest Expense $20 Credit Cash $20
	Debit Interest Revenue $20 Credit Cash $20