If a Business Receives $5,000 on Account from Clients Who

question 43

Multiple Choice

If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation:

• A)assets decrease and liabilities increase.
• B)assets remain the same and owner's equity remains the same.
• C)liabilities decrease and owner's equity decreases.
• D)owner's equity increases and revenue increases.

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Definitions:

Symbolic Play

A type of play in which children use objects, actions, or ideas to represent other objects, actions, or ideas, playing a crucial role in language and cognitive development.

Compensation

A mental operation in which a child realizes that changes in one aspect of a problem are compared with and compensated for by changes in another aspect.

Conservation of Number

A cognitive ability, identified by Piaget, that allows a child to understand that the quantity of an item remains the same despite changes in its shape or arrangement.