ion

ABC Company borrows $$150,000$ from App State bank, signing a promissory note.

The transactions effect on the accounting equation is:

increase CASH and increase NOTES PAYABLE

Notes payable is a liability; ABC is obligated to pay the money back.

Consider the following transaction:

ABC Company receives $$100,000$ in cash from customers for services performed.

In addition to an increase in the asset cash, how else is the expanded accounting equation impacted by this transaction?

increase in another non$-$cash asset

increase in liabilities

increase in common stock

increase in revenues

increase in expenses

increase in dividends