ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on the accounting equation? Question content area bottom Part 1 А. Assets increase by S20,000 and equity increases by $20,000. В. Assets increase by S20,000 and equity decreases by $20,000. C. Assets increase by $20,000 and liabilities decrease by $20,000. D. The amount of total assets remains the same.
ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on the accounting equation? Question content area bottom Part 1 А. Assets increase by S20,000 and equity increases by $20,000. В. Assets increase by S20,000 and equity decreases by $20,000. C. Assets increase by $20,000 and liabilities decrease by $20,000. D. The amount of total assets remains the same.
Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter2: Analyzing Transactions
Section: Chapter Questions
Problem 4MAD: Analyze Target The following data (in millions) are taken from the financial statements of Target...
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