Falana receives payment for services performed in the amount of $3,147.This transaction
A) decreases Wage Expense.
B) increases Cash.
C) increases owner's equity.
D) decreases Cash.

Question

Quizplus · Accepted Answer

Falana receiving payment for services performed would increase the Cash account. It does not decrease Wage Expense as that would be a separate transaction related to paying employees. It may increase owner's equity if Falana is the owner of the business, but we cannot assume that without further information. Therefore, the correct answer is B - increases Cash.

Falana Receives Payment for Services Performed in the Amount of $3,147.This