A customer was invoiced for services rendered.
A) A liability increased and another liability decreased.
B) An asset decreased and a liability decreased.
C) An asset increased and revenue increased.
D) An asset increased and another asset decreased.

Question

Quizplus · Accepted Answer

When a customer is invoiced for services rendered, it means that the company has earned revenue. This increases the revenue account, which is an equity account that shows the total income earned by the company. It also increases the accounts receivable account, which is an asset account that shows the amount of money owed to the company by its customers. Therefore, an asset (accounts receivable) increases and revenue increases.

A Customer Was Invoiced for Services Rendered