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Ott Company Sold Services for Cash

Question 58

Multiple Choice

Ott Company sold services for cash. What are the effects on the fundamental accounting equation?


A) Assets increase; liabilities, no effect; owner's equity increases.
B) Assets decrease; liabilities, no effect; owner's equity increases.
C) Assets increase; liabilities, no effect; owner's equity decreases.
D) Assets increase; liabilities, increase; owner's equity, no effect.

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