What is the impact on the accounting equation of receiving a check from customers for work to be performed over the next three periods (none in this period)?
Equity: no change
Liabilities: no change
If you receive a check but have not performed yet, you cannot record the revenue from this yet. ...
Students often have trouble analyzing the impact of business events on the accounting equation and individual accounts. By improving this skill, they get better at recording transactions and thinking through the impact of events. This question helps them to practice how events impact the balance sheet areas (assets, liabilities and equity).