Muddle Company Performs a Service for One of Its Customers

question 137

Multiple Choice

Muddle Company performs a service for one of its customers and immediately collects the cash.This transaction will:

• A)have no effect on liabilities.
• B)decrease net income.
• C)decrease Retained Earnings.
• D)increase Accounts Receivable.

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Definitions:

Economic Guidepost

Principles or indicators used to inform economic decisions and policies, guiding stakeholders through the complexities of economic systems.

Legislator

An individual who has the power to make, change, or repeal laws within a government.

Secondary Effects

Unintended consequences or outcomes that arise from a primary action or decision.

Unintended Consequences

Outcomes that are not the ones foreseen and intended by a purposeful action, often contrary to the original intentions.