Which of the following business transactions would increase the equity of ABC Limited?
A)ABC received a $1,200 cash payment on account from a customer.
B)ABC Limited's owner withdrew $900 cash to cover personal living expenses.
C)ABC purchased a building for $100,000 on account.
D)ABC purchased a new machine for $45,000 on account.
E)ABC billed a customer $14,800 for consulting services provided during the month.

Question

Quizplus · Accepted Answer

Billing a customer for consulting services provided during the month will increase ABC Limited's revenue and therefore increase equity.

Which of the Following Business Transactions Would Increase the Equity