ABC Delivery Service Had the Following Transactions in June: Earned

question 22

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 Cash of the June transactions?

• A) Up $1,800
• B) Down $300
• C) Down $6,300
• D) Up $5,300

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Definitions:

Trust

A fiduciary relationship in which one party, known as the trustor, gives another party, the trustee, the right to hold title to property or assets for the benefit of a third party.

Sarbanes-Oxley Act

A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.