Final answer:
Cash sales increase the cash account on the asset side of the accounting equation and have a corresponding impact on either liabilities or equity to maintain balance.
Step-by-step explanation:
When Becker Corp. makes cash sales to customers, it has an effect on the accounting equation. The accounting equation, also known as the balance sheet equation, is Assets = Liabilities + Equity. Cash sales increase the cash account on the asset side of the equation, which in turn increases the total assets of the company. This increase in assets is balanced by an increase in either liabilities or equity, depending on how the company chooses to finance its operations.
For example, if Becker Corp. finances its operations solely through equity, the increase in assets from cash sales will result in an increase in retained earnings or contributed capital on the equity side of the equation. On the other hand, if the company chooses to take on debt to finance its operations, the increase in assets will be balanced by an increase in liabilities, such as bank loans or accounts payable.
In summary, cash sales increase the cash account on the asset side of the accounting equation and have a corresponding impact on either liabilities or equity to maintain balance.