Asked by
Alexandria Balboa
on Dec 16, 2024Verified
Received payment from a customer on account
A) Increase assets, increase liabilities
B) Increase liabilities, decrease owner's equity
C) Increase assets, increase owner's equity
D) No effect
E) Decrease assets, decrease liabilities
F) Decrease assets, decrease owner's equity
Received Payment
The money received by an individual or a company for goods delivered or services rendered.
Accounting Equation
The fundamental principle of accounting that states assets equal liabilities plus owner's equity, serving as the foundation of the double-entry bookkeeping system.
Customer on Account
Transactions where a customer purchases goods or services on credit, creating an account receivable for the business.
- Understand the repercussions of financial transactions on the accounting equation.
Verified Answer
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Learning Objectives
- Understand the repercussions of financial transactions on the accounting equation.