On March 2, 2020, Lang Company provided snow removal services to a customer for $1,000 cash. What is the impact of this transaction on the net assets of Lang?
A) No impact
B) Decrease of $1,000
C) Increase of $1,00
D) Increase of $2,000
E) Decrease of $2,000

Question

Quizplus · Accepted Answer

The transaction increases the assets of Lang Company by $1,000 as they received cash for their services. There is no corresponding decrease in any other asset or increase in any liability or expense, so the net assets increase by $1,000.

On March 2, 2020, Lang Company Provided Snow Removal Services