Explain How the Following General Journal Entry Affects the Accounting $\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 500 & \\\hline \text { Service Revenue } & & 500 \\\hline\end{array}$

question 54

Multiple Choice

Explain how the following general journal entry affects the accounting equation.
$\begin{array}{|l|r|r|}\hline \text { Accounts Receivable } & 500 & \\\hline \text { Service Revenue } & & 500 \\\hline\end{array}$

• A) Both assets and stockholders' equity increase.
• B) Both liabilities and assets increase.
• C) Assets increase and stockholders' equity decreases.
• D) Liabilities increase and stockholders' equity decreases.

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Definitions:

Chrysler

An American automotive brand and subsidiary of Stellantis, known for producing vehicles such as cars, minivans, and sport utility vehicles.

Logistical Function

Involves the planning, implementation, and control of the efficient flow and storage of goods, services, and related information from point of origin to point of consumption to meet customer requirements.

Channel Intermediaries

Middlemen or agents between the producer and the consumer, facilitating the distribution of products or services through various channels.

Moving Product

The process of transferring goods from the point of production to locations where they can be distributed to consumers.