The grid below is a list of possible effects on the Income Statement and the Balance Sheet. The code is + = increase, - = decrease, NE = no effect

	Revenue/Gain	Expense/Loss	Net Income	Assets	Liability	Equity
a.	+20	NE	+20	+20	NE	+20
b.	+100	NE	+100	+20	+80	+100
c.	NE	NE	NE	-20	-20	NE
d.	+20	NE	+20	+100	NE	+100
e.	+100	NE	+100	+100	NE	+100

Match the effect that the transaction below has on a company's Income Statement and Balance Sheet. Choose (a) (b) (c) (d) or (e) from the grid above. For example, if the transaction is "Paid $20 due on accounts payable", the correct answer would be (c) because there is no effect on revenue, expense, or net income: a $20 decrease in assets and a $20 decrease in liabilities: and no effect on equity.

Transaction: Provided $100 of services to customers: $20 was for customers who paid in cash, and $80 was for customers who were sent bills for the amounts they owe.

a

b

c

d

e