Reference no: EM132680941

Problem 1: Assets created by selling goods and services on credit are

a. Accounts payable

b. Accounts receivable

c. Liabilities

d. Expenses

e. Equity

Problem 2: How would the accounting equation of Sky Company be affected by the billing of a client for P10,000 of consulting work completed?

a. +P10,000 Accounts receivable, -P10,000 Accounts payable

b. +P10,000 Accounts receivable, +P10,000 Accounts payable

c. +P10,000 Accounts receivable, +P10,000 Cash

d. +P10,000 Accounts receivable, +P10,000 Revenue

e. +P10,000 Accounts receivable, -P10,000 Revenue