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Blake Company completed a consulting job and billed the customer $5,000. The impact on Blake Company...

Blake Company completed a consulting job and billed the customer $5,000. The impact on Blake Company from this transaction A.

Blake Company completed a consulting job and billed the customer $5,000. The impact on Blake Company from this transaction A. increases liabilities and decreases stockholders' equity OB. decreases liabilities and increases stockholders' equity O C. increases assets and increases stockholders' equity. OD. increases assets and increases liabilities.
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Option c i.e. increase asset and increase stockholders' equity is correct   

Reason:

1.For increase in asset: Since, we have billed the customer, the amount recevable from him will be our asset and such amount will be presented in asset side of our balance sheet as sundry debtor.

2.For increase stockholders' equity: Since, we have generated revenue by giving consultancy advice and profit generated from revenue is transferred to stockholders' equity. As thus transfer of such revenue will lead to increase in stockholders' equity.

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