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The Effect on the Accounting Equation of the Business Invoicing

Question 29

Multiple Choice

The effect on the accounting equation of the business invoicing J.Bird for $1700 for computing services supplied to her on credit:

A) is an increase in the asset accounts receivable and an increase in profit and loss by $1700 to record the income earned.
B) is an increase in the asset cash and an increase in profit and loss by $1700 to record the income earned.
C) is a decrease in the asset cash and an increase in the asset accounts receivable of $1700 to record the amount paid.
D) is a decrease in the asset accounts receivable and an increase in profit and loss by $1700 to record the income earned.

Correct Answer: