A transaction recording income earned
A)leaves total assets unchanged.
B)increases assets and decreases equity.
C)increases assets and equity.
D)increase assets and liabilities.

Question

Quizplus · Accepted Answer

Recording income earned typically involves increasing an asset account (such as cash or accounts receivable) and increasing equity (such as retained earnings or revenue). There is no accompanying decrease in liabilities or assets, so options A, B, and D are not correct.

A Transaction Recording Income Earned