Receiving cash for services performed the same day would:
A)increase owner's equity and decrease total assets.
B)decrease total assets and decrease liabilities.
C)increase liabilities and increase total assets.
D)increase owner's equity and have no effect on liabilities.

Question

Quizplus · Accepted Answer

Receiving cash for services performed the same day increases owner's equity because it represents revenue earned. It does not affect liabilities but increases total assets due to the increase in cash.

Receiving Cash for Services Performed the Same Day Would