Lou made _______ in landscaping income last month.

Lou made _______ in landscaping income last month.

• A. $5,500
• B. $5,000
• C. $4,750
• D. $4,500

Answer: (A)

Understanding income for a period means adding up all payments received for the service during that time. In basic bookkeeping, revenue from services is recorded when the money actually comes in (cash basis). So the correct amount is the total of all landscaping payments Lou received last month. That total reflects every payment Lou collected for landscaping in that month, which is why it’s the best choice. The smaller totals would omit some payments Lou took in, so they don’t represent the full month’s income. (If you were using accrual accounting, you’d include revenue earned regardless of when payment is received, but many introductory problems focus on cash receipts.)

Understanding income for a period means adding up all payments received for the service during that time. In basic bookkeeping, revenue from services is recorded when the money actually comes in (cash basis). So the correct amount is the total of all landscaping payments Lou received last month. That total reflects every payment Lou collected for landscaping in that month, which is why it’s the best choice. The smaller totals would omit some payments Lou took in, so they don’t represent the full month’s income. (If you were using accrual accounting, you’d include revenue earned regardless of when payment is received, but many introductory problems focus on cash receipts.)