A company performed tax services for a client on account.The amount billed to the client was $5,000.In transaction analysis,how does this transaction affect the accounting equation?
A) Add $5,000 to Cash account and add $5,000 to Service Revenue account.
B) Add $5,000 to Cash account and add $5,000 to Retained Earnings account.
C) Add $5,000 to Accounts Receivable account and add $5,000 to Retained Earnings account.
D) Add $5,000 to Accounts Payable account and add $5,000 to Service Revenue account.
Correct Answer:
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