The Following Transactions Occurred During July

question 3

Multiple Choice

The following transactions occurred during July:
Received $900 cash for services provided to a customer during July.
Received $2,200 cash investment from Barbara Hanson,the owner of the business.
Received $750 from a customer in partial payment of his account receivable,which arose from sales in June.
Provided services to a customer on credit,$375.
Signed a promissory note for a $6,000 bank loan.
Received $1,250 cash from a customer for services to be rendered 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:

Oligopolistic

Describes a market structure in which a few firms dominate the industry, leading to limited competition.

Marginal Cost

The rise in overall expenses resulting from the manufacture of an extra unit of a product or service.

Collude

To collude means to cooperate or conspire in secret, especially with the intention to cheat or deceive others, such as companies agreeing to fix prices.

Total Revenue

The total amount of money generated by a company from sales of its products or services before any expenses are subtracted.