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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Commission was earned which will be paid for in 4 months' time.
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 a liability increased.

Question

Quizplus · Accepted Answer

Earning commission that will be paid for in the future increases an asset (accounts receivable) and also increases revenue, affecting the equity side of the equation.

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