This month,a company performed $517,000 of services and incurred total expenses of $438,000.If the company was paid in cash for all its services and paid cash for all its expenses,these transactions would cause:

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The company performed $517,000 of services, so revenues would increase by that amount. The company also incurred $438,000 of expenses, so expenses would increase by that amount. However, if the company was paid in cash for all its services and paid cash for all its expenses, then cash would also increase by $79,000 ($517,000 - $438,000). This would not affect retained earnings, as no profits or losses were generated by these transactions.

This Month,a Company Performed $517,000 of Services and Incurred Total