Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 34 - No. 45)
What is the effect on the accounting equation of receiving cash from a customer for services rendered?
Assets increase, and liabilities increase.
Assets increase, and owner's equity increases.
Assets decrease, and owner's equity increases.
Assets decrease, and owner's equity decreases.
Explanation
Cash (an asset) increases and revenue increases the owner's equity.
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