Ask Question
BusinessBusiness
18 August, 05:51

Assume that Global Cleaning Service performed cleaning services for a department store on account for $180. How would this transaction affect Global Cleaning Service's accounting equation? A. Increase both assets and liabilities by $180 B. Decrease liabilities by $180, and increase equity by $180 C. Increase both liabilities and equity by $180 D. Increase both assets and equity by $180

+2
Answers (1)
  1. 18 August, 08:27
    0
    D. Increase both assets and equity by $180

    Explanation:

    When a service is done on account, revenue will be recognized but the corresponding assets is accounts receivables and not cash. Hence the transaction will increase the company's revenue and assets balances. Revenue is turned into equity through retained earnings.

    The accounting equation is

    assets = liabilities + equity

    This transaction will increase assets and equity be $180 each.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Assume that Global Cleaning Service performed cleaning services for a department store on account for $180. How would this transaction ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
An asset with a historical cost of $14,725 and accumulated depreciation of $10,000 was discarded, having no market value. how much will be recorded as a loss or gain on disposal?
Answers (1)
Madsen Motor's bonds have 23 years remaining to maturity. Interest is paid annually, they have $1,000 par value, the coupon interest is 9%, and the yield to maturity is 11%. What is the bond's current market price
Answers (1)
What most likely will happen if the pie maker bakes a seventh pie? a) The marginal cost will most likely decrease to $1.00 b) The marginal cost will most likely increase to $2.
Answers (2)
Which statement is true. In the aggregate sense: (A) Total spending will equal total income (B) Total spending + total income will equal the value of the output (C) Total spending will be larger than total income (D) Total income will be larger than
Answers (1)
Lowden Company has an overhead application rate of 162% and allocates overhead based on direct material cost. During the current period, direct labor cost is $63,000 and direct materials used cost $77,000.
Answers (1)
New Questions in Business
On October 15, 2018, a 5% stock dividend was declared and distributed. The fair value of the common stock on this date was $31.8 per share. Fractional share rights represented 100,000 shares. Cash was paid in lieu of issuing fractional share rights.
Answers (1)
Which sources of information would be the most inclusive for an entrepreneur determining information to complete financial statements?
Answers (1)
When a celebrity receives extra compensation for winning an award, this compensation is referred to as a
Answers (2)
Inlcuded in Perry's capital balance is a $20,000 partnership loan owed to Perry. Perry, Quincy, and Renquist shared profits and losses in a ratio of 2:4:4. Liquidation expenses were expected to be $15,000. All partners were solvent.
Answers (1)
Consider a perfectly competitive market in which all firms have the same costs. Choose the statement that is incorrect. A. The market supply curve is upward sloping at prices above the firm's shutdown price. B.
Answers (1)
Home » Business » Assume that Global Cleaning Service performed cleaning services for a department store on account for $180. How would this transaction affect Global Cleaning Service's accounting equation? A. Increase both assets and liabilities by $180 B.
Sign Up Forgot Password?