Atkins Company Collected $1,750 as Payment for the Amount Owed

question 109

Multiple Choice

Atkins Company collected $1,750 as payment for the amount owed by a customer from services provided the prior month on credit.How does this transaction affect the accounting equation for Atkins?

• A)Assets would decrease $1,750 and liabilities would decrease $1,750.
• B)One asset would increase $1,750 and a different asset would decrease $1,750,causing no net change in the accounting equation.
• C)Assets would increase $1,750 and equity would increase $1,750.
• D)Assets would increase $1,750 and liabilities would increase $1,750.
• E)Liabilities would decrease $1,750 and equity would increase $1,750.

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Definitions:

Working Self-Concept

The working self-concept is a subset of an individual's self-knowledge that is actively processed and relevant in a given context or situation.

Self-Schema

is a belief about self that organizes and guides the processing of self-relevant information.

Frontal Lobe

The part of the brain located at the front of each cerebral hemisphere, responsible for voluntary movement, reasoning, planning, and problem-solving.

Self-Awareness

The awareness of one's own personality, emotions, motivations, and wishes.