Performing services on account would:
A)increase net income, decrease total assets, and decrease owner's equity.
B)increase net income, increase owner's equity, and increase total assets.
C)increase total assets and liabilities.
D)decrease total assets, increase net income, and increase owner's equity.

Question

Quizplus · Accepted Answer

Performing services on account increases net income because it generates revenue. This increase in net income also increases owner's equity, as profits are added to equity. Additionally, since the services are performed on account, it increases total assets in the form of accounts receivable.

Performing Services on Account Would