Practice prompt · Q:transactions-to-statements/cash-sources-001

Equal receipts from owner, bank, and customer

Classify cash received from an owner, a bank, and a customer.

Updated Sep 6, 2026 Review due Nov 6, 2026

Practice

Check your answer

Choose a response, then check the answer and explanation.

A new company has no opening balances and receives three separate $10,000 cash payments. An owner invests in the company, a bank provides a loan that the company must repay, and a customer pays for a service the company has completed. Which classification is correct after the three events?

Choose the best answer. A Revenue is $30,000, liabilities are $0, and equity is $30,000. B Revenue is $10,000, liabilities are $10,000, and equity is $20,000. C Revenue is $20,000, liabilities are $10,000, and equity is $20,000. D Revenue is $10,000, liabilities are $20,000, and equity is $10,000.

Your answer stays on this page. It is not sent or saved.

Show explanationHide explanation

Answer: B

The owner transfer increases Cash and equity through an investment by owner. The bank transfer increases Cash and liabilities. Only the customer payment for the completed service is revenue. Assets are $30,000, liabilities are $10,000, and equity is $20,000.