During March,Perpetual Envy Inc.provides $46,000 in consulting services for a customer.The customer paid $24,000;the other $22,000 was on account.Which of the following statements about these transactions is correct?
A) Cash increases by $24,000,Consulting Revenue increases by $22,000,and Accounts Receivable increases by $46,000.
B) Cash increases by $24,000,Accounts Receivable increases by $22,000,and Consulting Revenue increases by $46,000.
C) Accounts Receivable increases by $22,000,Liabilities decrease by $24,000,and Stockholders' Equity increases by $2,000.
D) Revenues increase by $24,000,liabilities decrease by $24,000,and Stockholders' Equity is unchanged.
Correct Answer:
Verified
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