if-a-company-records-a-300-debit-to-cash-and-a-300-credit-to-service-revenue-wha

Question

If a company records a $300 debit to Cash and a $300 credit to Service Revenue, what is the impact on the accounting equation?

Accepted Answer

Assets increase, and equity increases.

Answer

Assets increase, and liabilities decrease.

Answer

Assets decrease, and equity decreases.

Answer

Assets decrease, and liabilities increase.

If a company records a \$300 debit to Cash and a \$300 credit to Service Revenue, what is the impact on the accounting equation?