Wheaton Co.performed services for a customer on account.Indicate whether each of the following statements about this transaction is true or false.
_____ a)Assets and equity both increase when the revenue is recognized.
_____ b)This transaction did not affect cash flows.
_____ c)The company recorded an increase in revenue and a decrease in accounts receivable.
_____ d)Recognition of revenue would be delayed until cash was received.
_____ e)This transaction is an example of an asset exchange transaction.

Question

Quizplus · Accepted Answer

The Answer of Wheaton Co.performed services for a customer on account.Indicate whether each of the following statements about this transaction is true or false.
_____ a)Assets and equity both increase when the revenue is recognized.
_____ b)This transaction did not affect cash flows.
_____ c)The company recorded an increase in revenue and a decrease in accounts receivable.
_____ d)Recognition of revenue would be delayed until cash was received.
_____ e)This transaction is an example of an asset exchange transaction.