Root Company provided consulting services and billed the client $2,500. As a result of this event,
A) assets remained unchanged.
B) assets increased by $2,500.

C) owner's equity increased by $2,500.
D) Both b and C

Question

Root Company provided consulting services and billed the client $2,500. As a result of this event,
A) assets remained unchanged.
B) assets increased by $2,500.

C) owner's equity increased by $2,500.
D) Both b and C

Quizplus · Accepted Answer

The consulting service provided by Root Company is a revenue earned by the company, which increases its assets by $2,500 (choice B) and also increases the owner's equity by $2,500 (choice C). Therefore, the correct answer is D.

Root Company Provided Consulting Services and Billed the Client $2,500