Meteor, Inc. recognized revenue of $$600$ for the current year, of which $$120$ was received in cash. The rest of the cash will be collected in the following year. The company incurred expenses of $$300,$ of which $$180$ were paid in cash. The rest of the expenses were recorded as payables. What net effect did these transactions have on Total Assets?

Please indicate the amount that $1.$ Total Assets and $2.$ Total Shareholders Equity changed during the current year because of these transactions and whether it increased or decreased. Note: If you believe it was a decrease, please use a negative number for your answer.

Answer rating: 100% (QA)

Lets break down the transactions to understand their impact on Total Assets and Total Shareholders Equity 1 Revenue Recognition Revenue recognized 600 ... View the full answer