Asked by Grace Gallagher on Jul 05, 2024
Verified
Kim billed her legal clients $12,000 for legal work completed during the month. This transaction will:
A) cause a $12,000 increase in Revenues and Liabilities.
B) cause a $12,000 increase in Revenues and a decrease in cash.
C) cause a $12,000 increase in Assets and Revenues.
D) not be recorded until the cash is collected.
Revenues
The full extent of revenue garnered from the commercial activities that are at the core of a company’s operational agenda, particularly through goods or services.
Assets
Resources owned by a company that have economic value and can be used to meet its future obligations.
Liabilities
are legal financial debts or obligations that arise during the course of business operations.
- Develop an understanding of the foundational components of the basic accounting equation and its implementations.
- Perceive how income and expenses contribute to the financial situation of a business.
Verified Answer
Learning Objectives
- Develop an understanding of the foundational components of the basic accounting equation and its implementations.
- Perceive how income and expenses contribute to the financial situation of a business.
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