If a Business Receives $5,000 on Account from Clients Who

question 82

Multiple Choice

If a business receives $5,000 on account from clients who owed money for services previously billed,identify the effect on the accounting equation

• A) assets decrease and liabilities increase.
• B) liabilities decrease and owner's equity decreases.
• C) assets remain the same and owner's equity remains the same.
• D) owner's equity increases and revenue increases.

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Definitions:

Breathing Rate

The number of breaths taken per minute, an important indicator of respiratory health and function.

Respiratory Division

The part of the respiratory system involved in the actual exchange of gases, includes structures such as the alveoli and the respiratory bronchioles.

Gas Exchange

The process of exchanging oxygen and carbon dioxide between the bloodstream and the lungs or environment.

Respiratory Passageway

The series of structures involved in the transport of air between the atmosphere and the lungs.