Ohio Company provided services to a customer for $1,700 cash.As a result of this event,
A) total assets decreased.
B) total liabilities increased.
C) retained earnings increased.
D) cash flows from financing activities increased.

Question

Quizplus · Accepted Answer

The revenue earned from providing services increases the company's retained earnings, which is a component of stockholders' equity. There is no impact on total assets or liabilities, and cash flows from financing activities are not affected by this transaction.

Ohio Company Provided Services to a Customer for $1,700 Cash