Multiple Choice
A company performed tax services for a client on account.The amount billed to the client was $5,000.In transaction analysis,how does this transaction affect the accounting equation?
A) Add $5,000 to Cash account and add $5,000 to Service Revenue account.
B) Add $5,000 to Cash account and add $5,000 to Retained Earnings account.
C) Add $5,000 to Accounts Receivable account and add $5,000 to Retained Earnings account.
D) Add $5,000 to Accounts Payable account and add $5,000 to Service Revenue account.
Correct Answer:

Verified
Correct Answer:
Verified
Q17: Decreases in stockholders' equity that result from
Q60: An account with a normal debit balance
Q64: A business received the utility bill for
Q65: In transaction analysis,revenues and expenses that arise
Q66: A company declared and paid dividends of
Q71: The account is the basic summary device
Q72: A transaction that includes a debit to
Q73: The accounts of Local Company at May
Q74: At the end of the period,the difference
Q129: The normal balance of the Accounts Receivable