If services are provided for credit, in a proprietorship, then
A) assets will decrease.
B) liabilities will increase.
C) owner's equity will increase.
D) liabilities will decrease.

Name: If services are provided for credit, in a proprietorship, then A) assets will decrease. B) liabilities will increase. C) owner's equity will increase. D) liabilities will decrease.
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Question

Quizplus · Accepted Answer

When services are provided on credit, accounts receivable (an asset) increases, and revenue is recognized, which increases owner's equity.

If Services Are Provided for Credit, in a Proprietorship, Then