Multiple Choice
Use the following information for questions below
During a recent week, McMunn Legal Services received $25,000 cash from clients for services performed with a total value of $75,000. The balance is to be received within 30 days.
-The effect of this transaction in the accounting records would be
A) + $75,000 revenue = + $25,000 cash + $50,000 accounts receivable.
B) + $50,000 net income = + $50,000 assets.
C) + $25,000 revenue = + $25,000 cash.
D) + $75,000 revenue = + $75,000 accounts receivable.
Correct Answer:
Verified
Correct Answer:
Verified
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