A firm billed a customer for services but did not collect cash.What is the effect of this transaction?
A)Increases assets,increases revenues
B)Increases assets,decreases assets
C)Decreases assets,increases expenses
D)Decreases assets,decreases liabilities

Question

Quizplus · Accepted Answer

This transaction increases assets (accounts receivable) and increases revenues because the firm has earned revenue by providing services, even though cash has not yet been collected.

A Firm Billed a Customer for Services but Did Not