Hypnosis Institute Received Payments from Customers Who Had Been Billed

question 153

Multiple Choice

Hypnosis Institute received payments from customers who had been billed earlier for services provided. What effect does this transaction have on the accounting equation?

• A)Assets and liabilities increase.
• B)Assets and stockholders' equity increase.
• C)Assets and liabilities decrease.
• D)There is no effect on the accounting equation, as one asset account increases while another asset account decreases.

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Definitions:

Tribal

Related to a group of people that forms a community and often shares a common culture, language, and ancestry, historically used in contexts involving indigenous populations.

Median Household Income

The middle income value in a list of all household incomes, where half of the households earn more and half earn less.

Racial/Ethnic Groups

Categories of people identified by shared physical characteristics, ancestry, language, history, and cultural practices.

Wealth

The abundance of valuable financial assets or physical possessions which contributes to an individual's or group's prosperity and financial security.