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cash assets increase

Equity increases as sales revenue increases and net income increases.

No effect on Liabilities and Expenses

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Q: How does rendering of services for cash affect the accounting equation?
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Related questions

How does rendering of services on account affect the accounting equation?

Rendering services on account increases accounts receivable, as well as equity (retained earnings) For example, a company has provided cleaning services for an amount of $200; the customer is allowed a three week credit assets = liabilities + equity accounts receivable (assets): increases with +200 retained earnings (equity): increases with + 200 +200 = +200


How does receiving a bill to be paid next month for services rendered affect the accounting equation?

assets increase; liabilities increase


How do debits and credits affect the accounting equation?

The debits in the accounting equation increase the amount that appears on the left side. The credits in the accounting equation do the opposite and increase any amount that appears on the right side.


How does sales affect the accounting equation?

acoounts receivable and capital


How do withdrawals affect the accounting equation?

Debit Withdraw account and Credit Cash


How does paying a liability with cash affect the accounting equation?

assets decrease; liabilities decrease


How does the purchase of equipment by signing a note affect the accounting equation?

asset increased, liability increased


How does business and accounting affect the society?

how does business and accounting affect in the society


What economic events affect The accounting equation?

Economic event is the 'Name of transaction where monetory values are involves"


How does vat affect the accounting equation?

The VAT can affect the accounting equation in two different ways. The accounting equation is ASSET=CAPITAL+LIABILITIES So, if VAT is OWED from HMRC (receivable) it will be an asset, so the asset will increase and the Capital will increase as well. ASSET+X=CAPITAL+X+LIABILITIES, where X is the amount of VAT received. If VAT is owed TO HMRC (payable), then the liabilities will increase, which means that the capital will decrease with the same amount. ASSET=(CAPITAL-Y)+(LIABILITIES+Y) where Y is the amount of VAT to be paid.


When you use cash to pay down account payable how does it affect the accounting equation?

Assets decrese, liability decreases, and Owner's equity has no change. Assets=Liabilities+SE


How does accounting information helps research scholars?

They need accounting information to make a study and assess how accounting information affect business organisation.