A Company Completed the Following Transactions During the Month of October

question 30

Multiple Choice

A company completed the following transactions during the month of October: I. Purchased office supplies on account, $4,000.
II. Provided services for cash, $10,000.
III. Provided services on account, $12,000.
IV. Collected cash from a customer on account $7,000.
V. Paid the monthly rent of $3,000.
What was the company's total revenue for the month?

• A) $10,000
• B) $22,000
• C) $29,000
• D) $36,000

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Definitions:

Financial Crisis

A situation where the value of financial institutions or assets drops rapidly, leading to a loss of confidence in the financial system, possible bank runs, and reduced lending and spending.

Adverse Selection

A market process in which unwanted results occur when buyers and sellers have asymmetric information, typically resulting in high-quality goods or services being driven out of the market.

Insured Drivers

Individuals who have obtained insurance coverage to protect against potential losses or liabilities arising from automobile accidents or incidents.

Moral Hazard

A situation in economics where one party takes more risks because they know another party bears the cost of those risks.