Muddle Company Performs a Service for One of Its Customers

question 137

Multiple Choice

Muddle Company performs a service for one of its customers and immediately collects the cash.This transaction will:

• A)have no effect on liabilities.
• B)decrease net income.
• C)decrease Retained Earnings.
• D)increase Accounts Receivable.

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Definitions:

Ascomycetes

A large phylum of fungi characterized by the formation of spores in saclike structures called asci.

Zygomycetes

A class of fungi characterized by their life cycle, which includes the formation of a zygospore during sexual reproduction.

Basidiomycetes

A class of fungi characterized by producing spores on basidia, including mushrooms, puffballs, rusts, and smuts.

Chytridiomycetes

A class of fungi that are mostly aquatic and have a unique stage in their life cycle featuring flagellated spores, known for impacting amphibian populations.