The Diamond Store began business on June 1. During the month of June, Diamond had cash payments of $11,000. At the end of June, it had a $23,000 cash balance. Based on this information, the cash receipts for the month of June were:
A)$12,000.
B)$23,000.
C)$34,000.
D)$45,000.

Question

Quizplus · Accepted Answer

The cash receipts can be calculated by adding the cash payments to the ending cash balance and then subtracting the beginning cash balance (which is $0 since the business began in June). Therefore, cash receipts = $23,000 (ending balance) + $11,000 (payments) = $34,000.

The Diamond Store Began Business on June 1