During March, Perpetual Envy Inc. provides $20,000 in consulting services for a customer. The customer paid $10,000; the other $10,000 was on account. Which of the following statements about these transactions is correct? Multiple Choice Cash increases by $10,000, Consulting Revenue increases by $10,000, and Accounts Receivable increases by $20,000. Accounts Receivable increases by $10,000, Liabilities decrease by $10,000, and Stockholders' Equity increases by $20,000. Cash increases by $10,000, Accounts Receivable increases by $10,000, and Consulting Revenue increases by $20,000. Revenues increase by $10,000, liabilities decrease by $10,000, and stockholders' equity is unchanged
During March, Perpetual Envy Inc. provides $20,000 in consulting services for a customer. The customer paid $10,000; the other $10,000 was on account. Which of the following statements about these transactions is correct? Multiple Choice Cash increases by $10,000, Consulting Revenue increases by $10,000, and Accounts Receivable increases by $20,000. Accounts Receivable increases by $10,000, Liabilities decrease by $10,000, and Stockholders' Equity increases by $20,000. Cash increases by $10,000, Accounts Receivable increases by $10,000, and Consulting Revenue increases by $20,000. Revenues increase by $10,000, liabilities decrease by $10,000, and stockholders' equity is unchanged
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
During March, Perpetual Envy Inc. provides $20,000 in consulting services for a customer. The customer paid $10,000; the other $10,000 was on account. Which of the following statements about these transactions is correct?
Multiple Choice
-
Cash increases by $10,000, Consulting Revenue increases by $10,000, and
Accounts Receivable increases by $20,000. -
Accounts Receivable increases by $10,000, Liabilities decrease by $10,000, and
Stockholders' Equity increases by $20,000. -
Cash increases by $10,000, Accounts Receivable increases by $10,000, and Consulting Revenue increases by $20,000.
-
Revenues increase by $10,000, liabilities decrease by $10,000, and stockholders' equity is unchanged.
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