Question

The Utility Company provided services to Hardwick Company on account. Which of the following would describe the transaction’s effect on the Utility Company's financial statements?
A) Accounts Receivable +, Accounts Payable NA, Common Stock NA, Retained Earnings +, Rev. +, Exp. NA, Net Inc. +

B) Accounts Receivable NA, Accounts Payable +, Common Stock NA, Retained Earnings -, Rev. NA, Exp. +, Net Inc. -

C) Accounts Receivable +, Accounts Payable NA, Common Stock NA, Retained Earnings +, Rev. NA, Exp. NA, Net Inc. NA

Answer 1

Accounts Receivable +, Accounts Payable NA, Common Stock NA, Retained Earnings +, Rev. NA, Exp. NA, Net Inc. NA

Answer: Option C.

Explanation:

Financial statements are formal records of the financial activities and position of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form which is easy to understand.

Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes. Financial statements include: Balance sheet.