Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Received cash for providing services to customers
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

Receiving cash for services increases assets (cash) and increases owner's equity because it represents earned revenue, which increases the owner's equity.

Match Each Transaction with Its Effect on the Accounting Equation