When services are performed on account:
A)cash is increased.
B)revenue will not be recorded until the cash is received from the customer.
C)accounts receivable is increased.
D)accounts payable is increased.

Question

Quizplus · Accepted Answer

When services are performed on account, it means that the customer has not yet paid for the services but will do so in the future. Therefore, this results in an increase in accounts receivable, which is the amount owed to the business by the customer. The other options (A, B, and D) are not applicable in this scenario.

When Services Are Performed on Account