On March 2, 2015, 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)Increase of $2,000.
C)Increase of $1,000.
D)Decrease of $2,000.
E)Decrease of $1,000.

Question

Quizplus · Accepted Answer

The transaction increases the cash account by $1,000, while there is no information provided to suggest any decrease in Lang Company's assets. Therefore, there is a net increase in assets of $1,000 after providing the snow removal services.

On March 2, 2015, Lang Company Provided Snow Removal Services