Root Company Provided Consulting Services and Billed the Client $2,500

question 54

Multiple Choice

Root Company provided consulting services and billed the client $2,500. As a result of this event,

• A) assets remained unchanged.
• B) assets increased by $2,500.
• C) owner's equity increased by $2,500.
• D) Both b and C

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Definitions:

Mutual Agency

The principle in a partnership where each partner is empowered to commit the firm to a contract within the scope of the business’s operations.

Co-Ownership

A legal arrangement where two or more parties hold property rights simultaneously in the same asset or property.

Capital Interest

The share of ownership a partner has in a partnership, often represented as the value of their investment.

Bonus

An additional compensation paid to employees as an incentive or reward beyond their regular salary or wages.