Solved

A Company Performed Tax Services for a Client on Account

Question 56

Multiple Choice

A company performed tax services for a client on account.The amount billed to the client was $7,000.How does this transaction affect the accounting equation?


A) Add $7,000 to Cash and add $7,000 to Service Revenue.
B) Add $7,000 to Cash and add $7,000 to Retained Earnings.
C) Add $7,000 to Accounts Receivable and add $7,000 to Retained Earnings.
D) Add $7,000 to Accounts Payable and add $7,000 to Service Revenue.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions