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

---

Definitions:

Manipulative Actions

Actions designed to control or influence others in a subtle or deceptive manner.

Concealing Information

The act of intentionally hiding or withholding information from others.

Selective Presentation

A strategy where information is carefully chosen and presented to influence perception or outcome.

Resistance Point

The threshold or limit beyond which a person is unwilling to go in a negotiation, representing their minimum acceptable outcome.