2. Potato Inc. provided consulting services to a customer on account for $500 on March 3. On April 16, Potato collected the cash from that customer. What is the impact on Potato's accounting equation from the collection of cash? A. No net effect to the accounting equation. B. Decrease assets and increase liabilities. C. Increase assets and increase liabilities. D. Decrease assets and decrease liabilities. 3. British Airways collected cash on February 14 from the sale of a ticket to a customer on January 28. The flight took place on March 10. According to the Recognition Principle in which month should British Airways recognized this revenue? A. January B. February. C. March. D. Evenly in each of the three months. 4. Posting is the process of updating information from the A. ledger to the journal. B. journal to the ledger. C. journal to the statement of financial position. D. income statement to the statement of financial position. 5. The Dividends account is increased with a debit because dividends A. are an expense. B. are declared an asset. C. reduce liabilities. D. result in a decrease in equity, so debiting Dividends would have the effect of decreasing Equity