multiple choice question lmn enterprises performs accounting services for a client for $3,000 cash. what is…

multiple choice question lmn enterprises performs accounting services for a client for $3,000 cash. what is the effect on the accounting equation? increase one asset and decrease another asset increase liabilities and decrease retained earnings increase assets and increase retained earnings decrease assets and increase liabilities

multiple choice question lmn enterprises performs accounting services for a client for $3,000 cash. what is the effect on the accounting equation? increase one asset and decrease another asset increase liabilities and decrease retained earnings increase assets and increase retained earnings decrease assets and increase liabilities

Answer

Brief Explanations:

Cash is an asset. When the company receives $3,000 cash for providing services, assets increase. Revenue from providing services increases retained earnings. So, both assets and retained earnings increase.

Answer:

Increase assets and increase retained earnings