Beethoven Company provided consulting services and billed the client $3600. As a result of this event

A) assets remained unchanged.
B) assets increased by $3600.
C) owner's equity increased by $3600.
D) assets and owner's equity both increased by $3600.

Question

Natalie Collins · Accepted Answer

Final Answer : D, Explanation :  When a company provides services and bills the client, it is a revenue generating event. Therefore, the accounting equation will be impacted as follows: assets increase (due to accounts receivable), and owner's equity increases (due to revenue earned). In this case, both assets and owner's equity will increase by $3600.

Beethoven Company provided consulting services and billed the client $3600. As a result of this event

A) assets remained unchanged.
B) assets increased by $3600.
C) owner's equity increased by $3600.
D) assets and owner's equity both increased by $3600.

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Learning Objectives

Learning Objectives

Related questions

Beethoven Company provided consulting services and billed the client $3600. As a result of this eventA) assets remained unchanged.B) assets increased by $3600.C) owner's equity increased by $3600.D) assets and owner's equity both increased by $3600.

Definitions

Learning Objectives

Learning Objectives

Related questions

Beethoven Company provided consulting services and billed the client $3600. As a result of this event

A) assets remained unchanged.
B) assets increased by $3600.
C) owner's equity increased by $3600.
D) assets and owner's equity both increased by $3600.