For the following transaction,identify the type of change that would have occurred in the accounting equation: Assets = Liabilities + Issued Capital + Opening retained profits + Revenue - Expenses - Dividends
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The company received cash dividends on investments.
A) A liability increased and another liability decreased.
B) An asset decreased and a liability decreased.
C) An asset increased and revenue increased.
D) An asset increased and equity increased.

Question

Quizplus · Accepted Answer

Receiving cash dividends on investments increases the company's cash (an asset) and also increases revenue, as it is income earned from investments.

For the Following Transaction,identify the Type of Change That Would