Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Received cash for services provided
A)Increase assets, increase liabilities
B)Increase liabilities, decrease owner's equity
C)Increase assets, increase owner's equity
D)No effect
E)Decrease assets, decrease liabilities
F)Decrease assets, decrease owner's equity

Question

Quizplus · Accepted Answer

When cash is received for services provided, it increases the assets (cash) and owner's equity (revenue earned). There is no effect on liabilities. Therefore, the best choice is C - Increase assets, increase owner's equity.

Match Each Transaction with Its Effect on the Accounting Equation