Match Each Transaction with Its Effect on the Accounting Equation

question 176

Multiple Choice

Match each transaction with its effect on the accounting equation. Each letter may be used more than once.
-Received cash for services provided

• A)Increase assets, increase liabilities
• B)Increase liabilities, decrease owner's equity
• C)Increase assets, increase owner's equity
• D)No effect
• E)Decrease assets, decrease liabilities
• F)Decrease assets, decrease owner's equity

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Definitions:

Penal

Relating to, involving, or prescribing a penalty, often used in the context of laws, regulations, or punishments.

Wrongfully Returning

This term does not correspond to a widely recognized legal or business concept as described and thus may require additional context for accurate definition.

Liquidated Damages

A predetermined amount of money that must be paid as compensation for failure to fulfill certain contractual obligations, particularly in cases of breach of contract.

Consequential Damage

Refers to indirect losses suffered as a result of a breach of contract, beyond the immediate and direct damages.