During March, the Long Life Consulting Company provides $23,000 in consulting services of which $12,000 is immediately paid for and $11,000 is on account.
A) Cash increases $12,000, revenue increases $11,000, and contributed capital increases $23,000.
B) Cash increases $12,000, Accounts Receivable increases $11,000, and revenues increase $23,000.
C) Accounts Receivable increases $11,000, liabilities decrease $12,000, and stockholders' equity decreases $1,000.
D) Revenues increase $12,000, liabilities decrease $12,000, and stockholders' equity is unchanged.

Question

Quizplus · Accepted Answer

The company received $12,000 in cash and $11,000 is on account, which increases the Accounts Receivable balance. This transaction also results in an increase in revenues of $23,000. There is no mention of a change in contributed capital, liabilities, or stockholders' equity.

During March, the Long Life Consulting Company Provides $23,000 in Consulting