Which of the Following Changes Describes the Collection of $6,000

question 77

Multiple Choice

Which of the following changes describes the collection of $6,000 from customers who had charged on account for services preformed during a previous accounting period?

• A) Assets and shareholders' equity increase by $6,000.
• B) Assets and liabilities increase by $6,000.
• C) Assets and liabilities decrease by $6,000.
• D) No changes in total assets, liabilities, or shareholders' equity.

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Definitions:

Supply-Side

Supply-Side economics is a macroeconomic theory arguing that economic growth can be most effectively created by lowering taxes and decreasing regulation to increase the supply of goods and services.

Economic Schools

Economic schools of thought are different approaches or theories economists use to understand, analyze, and predict economic phenomena, each with its own assumptions and methodologies.

Supply-Side Economics

An economic theory that advocates reducing taxes and deregulating businesses to stimulate economic growth by increasing supply.

Laffer Curve

The Laffer Curve illustrates the relationship between tax rates and the amount of tax revenue collected by governments, showing there is an optimal tax rate that maximizes revenue.