If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation:
A. assets decrease and liabilities increase.
B. owner's equity increases and revenue increases.
C. liabilities decrease and owner's equity decreases.
D. assets remain the same and owner's equity remains the same.
Answer: D
You might also like to view...
In a short essay, discuss what factors could explain why some regions have not moved forward on the UN Millennium Development Goals (MDGs) according to Sachs and MacArthur.
What will be an ideal response?
Dividends paid from a foreign subsidiary to the U.S. parent company are not taxable under U.S. law
Indicate whether the statement is true or false
Stock can only be purchased in round lots
Indicate whether this statement is true or false.
A time series can consist of four different components: trend, seasonal, cyclical, and random (or noise)
a. True b. False Indicate whether the statement is true or false