What is the effect of the following transaction on the basic accounting equation? Customers paid $1,400 cash for services provided. 1) Liabilities decrease, owners' equity increases. 2) Assets decrease, liabilities decrease. 3) No entry, no effect. 4) Assets increase, assets decrease. 5) Assets increase, owners' equity increases. 6) Assets decrease, owners' equity decreases. 7) Liabilities increase, owners' equity decreases. 8) Assets increase, liabilities increase.

What is the effect of the following transaction on the basic accounting equation? Customers paid $1,400 cash for services provided. 1) Liabilities decrease, owners' equity increases. 2) Assets decrease, liabilities decrease. 3) No entry, no effect. 4) Assets increase, assets decrease. 5) Assets increase, owners' equity increases. 6) Assets decrease, owners' equity decreases. 7) Liabilities increase, owners' equity decreases. 8) Assets increase, liabilities increase.

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Description: What is the effect of the following transaction on the basic accounting equation?Customers paid $1,400 cash for services provided.1) Liabilities decrease, owners' equity increases.2) Assets decrease, liabilities decrease.3) No entry, no effect.4) As

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 26MC: What is the impact on the accounting equation when an accounts receivable is collected? A. both...

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