Discus what is the accounting equation

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Question: The collection of a $5,700 accounts receivable is recorded as an increase in Cash, $5,700, and a decrease in Accounts Receivable, $5,700. The initial recording of the fees earned on account is recorded as an increase in Accounts Receivable and an increase in Fees Earned. Services rendered for cash are recorded as an increase in Cash and an increase in Fees Earned. Accounting equation being out of balance because total assets would exceed total liabilities and stockholders' equity by $11,400.

Reference no: EM131527316

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