Yi Company provided services to a customer for $5,500 cash.As a result of this event,
A)total assets increased and total equity decreased.
B)total assets were unchanged and cash flows from operating activities increased.
C)liabilities decreased and net income increased.
D)total assets increased and net income increased.

Question

Quizplus · Accepted Answer

When Yi Company provided services to a customer for $5,500 cash, it increased their total assets because they now have cash in hand. Additionally, the revenue from the service provided would increase their net income, further increasing their total assets. Therefore, the correct answer is D - total assets increased and net income increased.

Yi Company Provided Services to a Customer for $5,500 Cash