Diamond, Inc

question 168

Multiple Choice

Diamond, Inc. had the following transactions during June: Performed services for $2,000 on account; received cash on account, $8,000; paid $700 for repair expense; paid $1,800 to a supplier that it owed from the previous month. What is the combined effect on Cash of these June transactions?

• A) $5,500 increase
• B) $5,500 decrease
• C) $8,000 increase
• D) $2,500 decrease

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Definitions:

Curds

The solid parts of milk that coagulate when milk is soured or treated with enzymes, used in cheese-making.

Whey

A liquid by-product of cheese production, rich in proteins and lactose, commonly used as a dietary supplement and in various food products.

Cocoa

A key agricultural commodity produced from the seeds of the cacao tree, used primarily in the making of chocolate.

Consumption

The use of goods and services by households.