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 new machine for $45,000 on account.
D) ABC billed a customer $14,800 for consulting services provided during the month.
E) ABC purchased a building for $100,000 on account.

Question

Quizplus · Accepted Answer

Billing a customer for services provided increases the revenue and therefore increases the equity of the company. A, B, C, and E are all transactions that do not directly impact the equity of the company.

Which of the Following Business Transactions Would Increase the Equity