Asked by Neala Kelly on Jun 06, 2024
Verified
Accounting services were provided to a customer for cash. How would this affect the accounting equation?
A) Cash and Accounts Receivable increase.
B) Accounts Payable decreased and Capital decreased.
C) Cash and Revenue increase.
D) None of the above are correct.
Accounting Equation
The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Equity.
Cash
Cash refers to the company's currency and coins on hand, including bank account balances, utilized for transactions and operational needs.
Revenue
The total financial proceeds accumulated from a company's chief business endeavors, including sales of services and goods integral to its operations.
- Acknowledge the role of revenue and expenses in determining a business's financial status.
- Comprehend the elements of the fundamental accounting equation and their utilization.
Verified Answer
Learning Objectives
- Acknowledge the role of revenue and expenses in determining a business's financial status.
- Comprehend the elements of the fundamental accounting equation and their utilization.
Related questions
If Beginning Capital Was $170,000, Ending Capital Is $93,000, and ...
If Liabilities Are $22,000 and Assets Are $42,000, Owner's Equity ...
Cup's Inc Paid $15,000 in Salaries and Wages for February ...
The Accounting Equation States That Total Assets Must Always Equal ...
The Three Elements That Make Up a Balance Sheet Are ...