Hypnosis Institute Received Payments from Customers Who Had Been Billed

question 153

Multiple Choice

Hypnosis Institute received payments from customers who had been billed earlier for services provided. What effect does this transaction have on the accounting equation?

• A)Assets and liabilities increase.
• B)Assets and stockholders' equity increase.
• C)Assets and liabilities decrease.
• D)There is no effect on the accounting equation, as one asset account increases while another asset account decreases.

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Definitions:

Preventing Deleterious Changes

Taking actions to stop harmful or damaging modifications from occurring.

McGrath

Refers potentially to Joseph Edward McGrath, a psychologist known for his research on small groups and team dynamics.

Executive Action/Internal

Executive action refers to decisions or measures taken by an organization's leadership, often involving strategic, policy, or managerial changes within an internal framework.

Interdependent

Describes a relationship or condition where entities or individuals rely on each other, highlighting mutual dependency.