Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit. How does this transaction affect the accounting equation for Atkins?
A) Assets would increase $1,750 and equity would increase $1,750.
B) Liabilities would decrease $1,750 and equity would increase $1,750.
C) One asset would increase $1,750 and a different asset would decrease $1,750, causing no net change in the accounting equation.
D) Assets would decrease $1,750 and liabilities would decrease $1,750.
E) Assets would increase $1,750 and liabilities would increase $1,750.
Correct Answer:
Verified
Q188: A company reported total equity of $145,000
Q189: The accounting equation for Ying Company shows
Q190: All of the following are classified as
Q191: The accounting equation for Long Company shows
Q192: If a company has excess space in
Q194: Billington Corp. borrows $80,000 cash from Second
Q195: Rico's Taqueria had cash inflows from operating
Q196: Charlie's Chocolates' owner made investments of $50,000
Q197: Dawson Electronic Services had revenues of $80,000
Q198: If the assets of a company increase
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents