ABC Inc. has total assets of $45,000. What are the total assets if new equipment is purchased for $5,000 cash?

A. $45,000

B. $50,000

C. $55,000

D. $60,000

The net income or net loss is calculated on the:

A. balance sheet.

B. statement of owners equity.

C. income statement.

D. annual profit report.

Julie billed her legal clients $5,000 for legal work completed during the month. This transaction will:

A. cause a $5,000 increase in cash and revenues.
B. cause a $5,000 increase in cash and owners equity.
C. cause a $5,000 increase in assets and revenues.
D. not be recorded until the cash is collected.