Evans Company sends invoices to all clients for services rendered for a total of $4,150. Required: What is the effect of this transaction on individual asset accounts, individual liability accounts, the Capital Stock account, and the Retained Earnings account?
A. An asset account increases.
B. An asset account decreases.
C. A liability account increases.
D. A liability account decreases.
E. Capital Stock increases.
F. Capital Stock decreases.
G. Retained Earnings increase.
H. Retained Earnings decrease.

A. An asset account increases.

G. Retained Earnings increase.

Explanation:

The starting point for this analysis would be using the double entries for the transaction,hence the invoicing of customers would give rise to the below entries:

Dr  Receivables (asset increases)                        $4,150

Cr Sales revenue(increase in retained earnings)              $4,150

Ultimately, the correct options are A,an asset account increases and G retained earnings increase,since the sales revenue brings about net income that would be recorded as part of retained earnings at the close of the period under consideration

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

false! basically!

i hope i'm correct.