Performing a service for cash would:
A)affect the accounting equation the same as if the service was performed on account.
B)increase assets more than if the service had been performed on account.
C)increase net income less than if the service had been performed on account.
D)decrease expenses more than if the service had been performed on account.

Question

Quizplus · Accepted Answer

Performing a service for cash or on account both increase assets (cash or accounts receivable, respectively) and revenues in the same manner, thus affecting the accounting equation similarly. The method of payment does not impact the amount of increase in net income or expenses.

Performing a Service for Cash Would