Black tie dinner dance-transaction


Davis, Inc., a music group, entertained at a black-tie dinner dance on April 26, and collected the fee in full at the end of the evening. This transaction:

A) Violates the matching principle unless any expenses associated with this cash receipt are paid prior to recording the revenue.

B) Is recorded by debiting Cash and crediting the Retained Earnings account.

C) Causes an increase in assets and a decrease in owners' equity.

D) Causes an increase in assets and revenue, as well as an increase in owners' equity.

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Accounting Basics: Black tie dinner dance-transaction
Reference No:- TGS047491

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