acme service company rendered services and collected half of the invoice in cash. the remaining balance is…

acme service company rendered services and collected half of the invoice in cash. the remaining balance is due at the end of the month. this transaction - select answer from the options below\na increases assets and liabilities; decreases stockholders’ equity.\nb increases assets, liabilities, and stockholder’s equity.\nc increases assets and stockholders’ equity.\nd has no effect on the basic accounting equation.

acme service company rendered services and collected half of the invoice in cash. the remaining balance is due at the end of the month. this transaction - select answer from the options below\na increases assets and liabilities; decreases stockholders’ equity.\nb increases assets, liabilities, and stockholder’s equity.\nc increases assets and stockholders’ equity.\nd has no effect on the basic accounting equation.

Answer

Brief Explanations:

When the company renders services, it earns revenue which increases stockholders' equity. Collecting half of the invoice in cash increases the asset (cash). The remaining balance due is an accounts - receivable, another asset. There is no liability created in this transaction. So, assets and stockholders' equity increase.

Answer:

C. Increases assets and stockholders’ equity.