Falana received $7,000 in cash from a client for professional services rendered.This transaction would
A) increase assets and increase owner's equity.
B) decrease assets and increase owner's equity.
C) increase liabilities and decrease owner's equity.
D) decrease assets and decrease owner's equity.

Question

Quizplus · Accepted Answer

Receiving $7,000 in cash from a client would increase the assets of the business, as there is an increase in cash. Additionally, this increase in assets would increase the owner's equity through the revenue earned from providing professional services to the client. Therefore, option A is correct.

Falana Received $7,000 in Cash from a Client for Professional