Ace Builders Had the Following Transactions in June: Earned $4,000

question 29

Multiple Choice

Ace Builders had the following transactions in June: Earned $4,000 "on account;" 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 to a supplier that it owed from the previous month; paid out $800 in cash drawings to the owner.
-What is the combined effect on Owner's capital of the June transactions?

• A) Down $2,700
• B) Down $5,700
• C) Up $2,700
• D) Down $4,500

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Definitions:

Shaping

A method used in behavioral psychology to gradually train a new behavior by reinforcing successive approximations of the desired behavior.

Successive Approximations

A technique in behaviorism where behaviors are broken down into small tasks and each one is mastered in turn leading towards a target behavior.

Desired Response

The expected or targeted reaction or outcome from a given stimulus or action.

Discriminative Stimulus

A stimulus in the presence of which a particular behavior is reinforced, helping the individual to distinguish when certain behaviors are likely to be rewarded.