chapter 3\nquestion 1\na company provided services to customers then sent them invoices for the amounts…

chapter 3\nquestion 1\na company provided services to customers then sent them invoices for the amounts owed. what effect does this transaction have on the accounting equation?\n a assets and liabilities increase.\n b assets and retained earnings increase.\n c assets and liabilities decrease.\n d liabilities decrease and contributed capital increases.

chapter 3\nquestion 1\na company provided services to customers then sent them invoices for the amounts owed. what effect does this transaction have on the accounting equation?\n a assets and liabilities increase.\n b assets and retained earnings increase.\n c assets and liabilities decrease.\n d liabilities decrease and contributed capital increases.

Answer

Brief Explanations:

When a company provides services and sends invoices, it creates accounts - receivable (an asset) as it has a right to receive payment. Also, the revenue from the services increases retained earnings. The accounting equation is Assets = Liabilities + Equity (Retained Earnings is part of Equity). So, assets and retained earnings increase.

Answer:

B. Assets and retained earnings increase.