Lang Industries Received Payments from Customers Who Had Been Billed

question 49

Multiple Choice

Lang Industries received payments from customers who had been billed earlier for services provided. What effect does this transaction have on Lang's accounting equation?

• A) Assets and liabilities increase.
• B) Assets and stockholders' equity increase.
• C) Assets and liabilities decrease.
• D) There is no net effect on the accounting equation, as one asset account increases while another asset account decreases.

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Definitions:

Publicly

Pertains to anything done or existing in open view, accessible to all members of the community or targeted audience, often under public scrutiny.

Discomfort

A feeling of physical or emotional unease or discomfort, often leading to avoidance behavior or a desire for change.

Affiliation

The relationship or connection one has with a group, organization, or institution, often indicating a sense of belonging or mutual association.

Expectancy

The belief or anticipation that something will happen in the future, often influencing behavior towards achieving it.