Asked by eunice morel on May 22, 2024
Verified
Received cash for services provided
A) Increase assets, increase liabilities
B) Increase liabilities, decrease owner's equity
C) Increase assets, increase owner's equity
D) No effect
E) Decrease assets, decrease liabilities
F) Decrease assets, decrease owner's equity
Services Provided
Work performed by one party for another without the supply of tangible goods. Examples include consulting, marketing, maintenance, and legal services.
Accounting Equation
The accounting equation is a fundamental principle of accounting representing the relationship between assets, liabilities, and owner's equity (Assets = Liabilities + Owner's Equity).
Received Cash
Funds that are taken in by the company, often from transactions such as sales, loans, or investments.
- Learn about the implications of financial transactions on the accounting equation.
Verified Answer
SU
Steven UnderwoodMay 26, 2024
Final Answer :
C
Explanation :
When cash is received for services provided, it increases the assets (cash) and owner's equity (revenue earned). There is no effect on liabilities. Therefore, the best choice is C - Increase assets, increase owner's equity.
Learning Objectives
- Learn about the implications of financial transactions on the accounting equation.