Falana Received $7,000 in Cash from a Client for Professional

question 29

Multiple Choice

Falana received $7,000 in cash from a client for professional services rendered.This transaction would

• A) increase assets and increase owner's equity.
• B) decrease assets and increase owner's equity.
• C) increase liabilities and decrease owner's equity.
• D) decrease assets and decrease owner's equity.

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Definitions:

Business Adopting

The process by which a company begins to implement new strategies, technologies, or practices to improve its operations and adapt to market changes.

Debt Security

A financial instrument representing a loan made by an investor to a borrower, typically involving regular interest payments and the return of principal at maturity.

Borrower's Assurance

A guarantee provided by a borrower to a lender that the borrower will meet the obligations of the loan agreement.

Lenders

Entities or individuals that provide funds to borrowers under an agreement to repay with interest.