If an Entity Receives Cash from a Customer for Payment

question 17

Multiple Choice

If an entity receives cash from a customer for payment of an amount owing to them, what is the effect on the accounting equation?

• A)Assets and liabilities both increase.
• B)Assets and liabilities both decrease.
• C)Assets and owners' equity both decrease
• D)There is no effect on the accounting equation.

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Definitions:

Environment

encompasses all external factors and conditions that affect living organisms, including natural forces and other living things, which provides the context for the development and growth of organisms.

Simultaneously

Occurring, operating, or done at the same time.

Darwin

Charles Darwin, a 19th-century naturalist known for his contributions to the science of evolution and his theory of natural selection.

Population

The entire group about which the investigator wants to draw conclusions.