A Company Provided Services to Customers Then Sent Them Invoices

question 157

Multiple Choice

A company provided services to customers then sent them invoices for the amounts owed. What effect does this transaction have on the accounting equation?

• A)Assets and liabilities increase.
• B)Assets and retained earnings increase.
• C)Liabilities decrease and contributed capital increases.
• D)Assets and liabilities decrease.

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Definitions:

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