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Accounting & Bookkeeping & Small Business Forum
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nikeboy2008
Joined: 31 Aug 2008
Posts: 1
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| Posted: Sun Aug 31, 2008 4:22 pm Post subject: Financial Accounting Question...please help |
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Received cash from customers on account, $10,740.
What is the effect of this transaction?
A. Increase in an asset, decrease in another asset.
B. Increase in an asset, increase in a liability
C. Increase in an asset, increase in owner's equity
D. Decrease in n asset, decrease in a liability
E. Decrease in an asset, decrease in owner's equity. |
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stasia2003
Joined: 25 Feb 2008
Posts: 199
Location: FL
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| Posted: Sun Aug 31, 2008 7:06 pm Post subject: Re: Financial Accounting Question...please help |
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nikeboy2008 wrote: Received cash from customers on account, $10,740.
What is the effect of this transaction?
A. Increase in an asset, decrease in another asset.
B. Increase in an asset, increase in a liability
C. Increase in an asset, increase in owner's equity
D. Decrease in n asset, decrease in a liability
E. Decrease in an asset, decrease in owner's equity.
This is a VERY simple accounting question. Since we can't do your homework for you, I'll tell you this much.
Hint #1: Anytime money is owed to a company from customers, it goes in the accounts receivable account. There are two accounts effected in your homework problem and I just gave you one.
Hint #2: Use the accounting equation.
If you still can't figure it out, please tell us what you don't understand. :wink: |
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