Comstock Company provided consulting services and billed the client $2,500.As a result of this event,
A)total assets remained unchanged.
B)assets increased by $2,500.
C)equity increased by $2,500
D)Both assets and equity increased by $2,500.

Question

Quizplus · Accepted Answer

When Comstock Company billed the client $2,500 for consulting services, accounts receivable (an asset) increased by $2,500, and since revenue increases equity, equity also increased by $2,500.

Comstock Company Provided Consulting Services and Billed the Client $2,500