ABC Delivery Service Had the Following Transactions in June: Earned

question 28

Multiple Choice

ABC Delivery Service had the following transactions in June: Earned $4 000 cash for services rendered; collected $2 500 from a customer 'on account;' paid out $200 cash for plumbing services; received $3 500 of supplies and promised to pay one month later; paid out $1 000 in cash drawings to the owner. What is the combined effect on Owner's capital of the June transactions?

• A)Up $2 800
• B)Down $6 300
• C)Down $300
• D)Up $5 300

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Definitions:

ΔTR/Δq

Represents the change in total revenue divided by the change in quantity sold, indicating marginal revenue.

TR/q

Represents Total Revenue divided by quantity, a formula used to calculate average revenue per unit sold.

Short Run

A period during which at least one of a firm's inputs is fixed and cannot be changed.

Average Total Cost

The total cost of production divided by the quantity of output produced, it includes all variable and fixed costs.