If services are performed on credit, then
A)assets will decrease.
B)liabilities will increase.
C)shareholders' equity will increase.
D)liabilities will decrease.

Name: If services are performed on credit, then A)assets will decrease. B)liabilities will increase. C)shareholders' equity will increase. D)liabilities will decrease.
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Question

Quizplus · Accepted Answer

When services are performed on credit, accounts receivable (an asset) increases, and revenue is recognized, which increases shareholders' equity through retained earnings.

If Services Are Performed on Credit, Then