During 2015, Maverick Law Firm Had the Following Transactions with It

question 135

Multiple Choice

During 2015, Maverick Law Firm had the following transactions with it clients (customers) :
-On February 1, 2015, the company received cash of $5,000 from clients in payment of their account balances as of December 31, 2014.
-On November 1, 2015, the company received $2,000 cash as payments in advance for law services to be performed in 2016.
-The company received a total of $13,000 in cash for law services that were performed during 2015.
-The company sent bills totaling $4,000 to clients for services performed during 2015; this amount was unpaid as December 31, 2015.
-Use the information above to answer the following question.Based on the activities above,as a result of these transactions during 2015,the law firm's stockholders' equity will:

• A) increase by $20,000.
• B) decrease by $5,000.
• C) increase by $17,000.
• D) decrease by $2,000.

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Definitions:

Urban Areas

Regions characterized by high population density, advanced infrastructure, and significant economic activities, typically including cities and towns.

Mass Consumption

The widespread purchase and use of goods and services by a large number of people, characteristic of developed economies with high levels of consumer spending.

Patriotic Act

Likely refers to the USA PATRIOT Act, a significant legislative act passed in 2001 aimed at enhancing domestic security through expanded surveillance and investigative powers to prevent terrorism.

Rebellion

An act of violent or open resistance to an established government or ruler.