Questions
Introduction to Financial Accounting M2: Quiz
Single choice
Performing a service for cash will
Options
A.increase total liabilities and total owners' equity of the company.
B.have no effect on total assets.
C.increase both total assets and total owners' equity
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Step-by-Step Analysis
When a service is performed for cash, the company earns revenue and receives cash in return. This transaction has two effects: first, cash (an asset) increases, since the business now holds more cash......Login to view full explanationLog in for full answers
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