The receipt of $8,000 of cash for fees earned was recorded by Langley Consulting as an increase in…

The receipt of $8,000 of cash for fees earned was recorded by Langley Consulting as an increase in cash of $8,000 and a decrease in retained earnings (revenues) of $8,000. What is the effect of this error on the accounting equation?

A. Total assets will exceed total liabilities and stockholders’ equity by $8,000.

B. Total assets will be less than total liabilities and stockholders’ equity by $8,000.

C. Total assets will exceed total liabilities and stockholders’ equity by $16,000.

D. The error will not affect the accounting equation.

"Is this question part of your assignment? We can help"

ORDER NOW