Asked by

Justin Nguy?n
on Nov 18, 2024

verifed

Verified

How does receiving a bill to be paid next month for services received affect the accounting equation?

A) assets decrease; stockholders' equity decreases
B) assets increase; liabilities increase
C) liabilities increase; stockholders' equity increases
D) liabilities increase; stockholders' equity decreases

Accounting Equation

The basic formula expressing that a company's total assets are equal to the sum of its liabilities plus equity capital.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, representing the owners' claim on the business.

Assets

Assets are economic resources controlled or owned by a business, intended to provide future benefits, such as cash, inventory, property, and equipment.

  • Recognize the effect of business transactions on the accounting equation.
verifed

Verified Answer

HA
Hajer Al SerediNov 18, 2024
Final Answer:
Get Full Answer