Performing a service and immediately collecting the cash would:
A)increase net income less than if the service had been performed on account.
B)increase assets more than if the service had been performed on account.
C)increase owner's equity less than if the service had been performed on account.
D)have no effect on liabilities.

Question

Quizplus · Accepted Answer

Performing a service and immediately collecting cash does not involve taking on any liabilities, as it is a cash transaction. There is no borrowing or incurring of debt; therefore, liabilities remain unchanged.

Performing a Service and Immediately Collecting the Cash Would