Use the Following Information for Questions Below

question 14

Multiple Choice

Use the following information for questions below
During a recent week, McMunn Legal Services received $25,000 cash from clients for services performed with a total value of $75,000. The balance is to be received within 30 days.
-The effect on the Statement of Financial Position equation for this transaction would be

• A)+ $25,000 cash = - $50,000 accounts payable + $75,000 retained earnings.
• B)+ $25,000 cash - $50,000 accounts receivable = $75,000 retained earnings.
• C)+ $25,000 cash + $50,000 accounts receivable = + $75,000 retained earnings.
• D)+ $25,000 cash = + $25,000 retained earnings.