A company performed $25,905 of services and received $9,000 in cash with the remaining amount to be paid in 60 days with no interest.
What would the effect of this transaction on the company's current month-end accounting equation?
A) $9,000 increase in Assets; $16,905 decrease in Liabilities; $25,905 increase in Stockholders' Equity
B) $25,905 increase in Assets; $25,905 increase in Liabilities; No effect on Stockholders' Equity
C) $16,905 increase in Assets; No effect on Liabilities; $16,905 increase in Stockholders' Equity
D) $25,905 increase in Assets; No effect on Liabilities; $25,905 increase in Stockholders' Equity
Correct Answer:
Verified
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