Question
This month, a company performed $526,000 of services and incurred total expenses of $438,900. The company was paid in cash for all its services and
This month, a company performed $526,000 of services and incurred total expenses of $438,900. The company was paid in cash for all its services and paid cash for all its expenses. These transactions would cause:
A. revenues to increase by $87,100, expenses to increase by $438,900, and cash to increase by $526,000.
B. revenues to increase by $526,000, expenses to increase by $438,900, and cash to increase by $87,100.
C. revenues to increase by $526,000, expenses to increase by $438,900, and retained earnings to decrease by $87,100.
D. cash to increase by $526,000, expenses to increase by $438,900, and common stock to increase by $87,100.
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