If a Business Receives $5,000 on Account from Clients Who

Multiple Choice

If a business receives $5,000 on account from clients who owed money for services previously billed, identify the effect on the accounting equation:

A) assets decrease and liabilities increase.
B) assets remain the same and owner's equity remains the same.
C) liabilities decrease and owner's equity decreases.
D) owner's equity increases and revenue increases.