Question 8:

The accounting equation for Zebra Enterprises is as follows:

Assets	=	Liabilities	+	Stockholders' Equity
$720,000	=	$360,000	+	$360,000

- If the company now receives a payment of $60,000 on account from a customer, the accounting equation will change to:

Choose Correct Answer:

A)

Assets		Liabilities		Stockholders' Equity
$780,000	=	$300,000	+	$480,000

B)

Assets		Liabilities		Stockholders' Equity
$720,000	=	$360,000	+	$360,000

C)

Assets		Liabilities		Stockholders' Equity
$780,000	=	$420,000	+	$360,000

D)

Assets		Liabilities		Stockholders' Equity
$780,000	=	$420,000	+	$360,000