The Following Transactions Occurred During July

question 11

Multiple Choice

The following transactions occurred during July:
1.Received $900 cash for services provided to a customer during July.
2.Issued common stock for $2,200 cash.
3.Received $750 from a customer in partial payment of his account receivable which arose from sales in June.
4.Provided services to a customer on credit,$375.
5.Borrowed $6,000 from the bank by signing a promissory note.
6.Received $1,250 cash from a customer for services to be performed next year.
What was the amount of revenue for July?

• A)$900.
• B)$1,275.
• C)$2,525.
• D)$3,275.
• E)$11,100.

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Definitions:

Foreign Purchases Effect

The phenomenon where changes in domestic prices can influence the demand for foreign and domestically produced goods.

American Price Level

The average of current prices across the entire spectrum of goods and services produced in the United States.

Aggregate Demand

The cumulative request for goods and services in an economy, gauged at a singular comprehensive price level during a designated time span.

Keynesian Economist

An economist who follows the principles of John Maynard Keynes, advocating for government intervention through fiscal and monetary policies to manage economic cycles.