Table 1-3 Ace Builders Had the Following Transactions in June: Earned $4,000

question 72

Multiple Choice

Table 1-3
Ace Builders had the following transactions in June: earned $4,000 "on account" that will be collected in cash next month; collected $3,000 from a customer that was owed from a previous month; incurred $500 of repair expense and paid cash to the repairman; paid $1,200 cash to a supplier that it owed from the previous month; paid out $800 in cash withdrawals to the owner.
-For Ace Builders, what is the combined effect on cash from the June transactions?

• A)Down $800
• B)Down $2,500
• C)Up $4,500
• D)Up $500

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Definitions:

Choice Theory

A psychological model explaining human behavior based on internal motivation, suggesting that all choices are made to satisfy five basic needs.

Boundaries

Boundaries are limits or borders between individuals, professions, or areas of responsibility, used to define or separate roles, responsibilities, and behaviors.

Family System

A concept in psychology that views the family as an emotional unit and uses systems theory to describe complex interactions within the unit.

Continuum of Services

A range of services or supports available to meet the varying needs of individuals or groups, often from basic to complex.