Question
The owner of complete consulting provides consulting services to her new client in the amount of $20,000. The client pays $2,000 that day and agrees
The owner of complete consulting provides consulting services to her new client in the amount of $20,000. The client pays $2,000 that day and agrees to pay the remaining $18,000 within 30 days. As a result of this transaction, in terms of the accounting equation for complete consulting:
- total assets will increase by $20,000 and total stockholders equity will increase by $20,000
- total liabilities will increase by $18,000 and total stockholders equity will increase by $20,000
- total assets will increase by $2,000 and total stockholders equity will increase by $20,000
- there will be no change to the accounting equation because total assets will both increase and decrease by the same amount
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