A business renders services to a client and issues a sales invoice. The amount will be collected from the customer at a later time. Which of the following would be true at the time the invoice is issued?
A)Owner's equity will decrease.
B)Total liabilities will increase.
C)Total assets will decrease.
D)Net income will increase.

Question

Quizplus · Accepted Answer

Issuing a sales invoice for services rendered increases accounts receivable (an asset) and recognizes revenue, which increases net income.

A Business Renders Services to a Client and Issues a Sales