Diamond, Inc

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