How would the accounting equation of Boston Company be affected by the billing of a client for 10000 of counsulting work completed?

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1281971

2026-05-07 08:35

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When Boston Company bills a client for $10,000 of consulting work completed, accounts receivable (an asset) will increase by $10,000, reflecting the amount owed by the client. Simultaneously, revenue (part of equity) will also increase by $10,000, reflecting the income earned from the consulting work. Therefore, the accounting equation (Assets = Liabilities + Equity) remains balanced as both sides increase by the same amount.

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