ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on theaccounting equation?Question content area bottomPart 1А.Assets increase by $20,000 and equity increases by $20,000.В.Assets increase by $20,000 and equity decreases by $20,000.C.Assets increase by $20,000 and liabilities decrease by $20,000.D.The amount of total assets remains the same.

Name: ABC Company earns $20,000 of revenue and collects this amount in cash
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Description: ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on theaccounting equation?Question content area bottomPart 1А.Assets increase by $20,000 and equity increases by $20,000.В.Assets increase by $20,000 and equit

In this question, we are required to analyse the effect of the following transaction in Assets,…

Business

Accounting

ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on the accounting equation? Question content area bottom Part 1 А. Assets increase by S20,000 and equity increases by $20,000. В. Assets increase by S20,000 and equity decreases by $20,000. C. Assets increase by $20,000 and liabilities decrease by $20,000. D. The amount of total assets remains the same.

ABC Company earns $20,000 of revenue and collects this amount in cash. What is the effect on the accounting equation? Question content area bottom Part 1 А. Assets increase by S20,000 and equity increases by $20,000. В. Assets increase by S20,000 and equity decreases by $20,000. C. Assets increase by $20,000 and liabilities decrease by $20,000. D. The amount of total assets remains the same.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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