Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are:

Name: Blue Company collected $2,000 cash for work completed. The effects on the accounting equation are:
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Question

Quizplus · Accepted Answer

When Blue Company collects $2,000 cash for work completed, there is an increase in cash (an asset) and an increase in revenue (which increases equity). Since both assets and equity increase by the same amount, the accounting equation remains in balance. Therefore, option B is the correct answer.

Blue Company Collected $2,000 Cash for Work Completed