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Boyd is a former Certified Public Accountant (CPA) and the author of several of the popular "For Dummies" books published by John Wiley & Sons including 'CPA Exam for Dummies' and 'Cost Accounting for Dummies'. Ken has gained a wealth of business experience through his previous employment ...
Since an asset (cash) increased then an asset (A/R) decreased by the same amount, there is no effect to the accounting equation. You can see that the accounting equation was affected in November when revenue was recorded. Arrow Printers paid $2,000 interest on short-term notes payable, ...
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