If a company is paid in full for services provided this month,how will the basic accounting equation be affected?
A)Liabilities will decrease.
B)Stockholders' equity will increase as revenue is recorded.
C)Liabilities will increase.
D)Assets will decrease.

Question

Quizplus · Accepted Answer

The receipt of cash for services provided increases assets and revenues.Revenues increase net income,which increases the stockholders' equity account Retained Earnings.

If a Company Is Paid in Full for Services Provided