Yi Company provided services to a customer for $5,500 cash.Based on this information alone,which of the following statements is true?
A)Total assets increased and total equity decreased.
B)Total assets were unchanged.
C)Liabilities decreased and net income increased.
D)Total assets increased and net income increased.

Question

Quizplus · Accepted Answer

Providing services to a customer for cash increases assets and equity on the balance sheet.It also increases revenue,and therefore,net income on the income statement.

Yi Company Provided Services to a Customer for $5,500 Cash