How Would the Accounting Equation of Boston Company Be Affected

question 116

Multiple Choice

How would the accounting equation of Boston Company be affected by the billing of a client for $10,000 of consulting work completed?

• A) +$10,000 accounts receivable, -$10,000 accounts payable.
• B) +$10,000 accounts receivable, +$10,000 accounts payable.
• C) +$10,000 accounts receivable, +$10,000 cash.
• D) +$10,000 accounts receivable, +$10,000 revenue.
• E) +$10,000 accounts receivable, -$10,000 revenue.

---

Definitions:

Σ

Represents the mathematical symbol for summation, indicating the addition of a sequence of numbers.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution of data, often the mean, median, or mode.

Standard Deviation

A statistic that indicates the dispersion or variability of a set of numerical data points around the mean.

Sample Size

The number of observations or participants included in a statistical sample.