Diamond Company Had the Following Transactions During June: Performed Services

question 97

Multiple Choice

Diamond Company had the following transactions during June: Performed services for $3,000 on account; received cash on account,$8,000; paid $900 for repair expense; paid $1,600 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:

Netnography

A qualitative research methodology that studies cultures and communities through their online interactions and digital communications.

Online Communities

Virtual spaces where people with shared interests or goals come together to communicate, share information, and build relationships.

Consumer Interest

The inclination of consumers to purchase goods and services based on desires and needs.

Mystery Shoppers

Trained researchers hired to pose as customers in order to gather information about the physical appearance or customer service attributes of a store.