A company performed services for a customer for cash.This transaction increased assets and:
A)decreased stockholders' equity.
B)increased liabilities.
C)increased expenses.
D)increased revenues.

Question

Quizplus · Accepted Answer

When a company performs services for a customer for cash, it earns revenue, which increases assets (cash) and revenues. Therefore, option D is the correct choice. This transaction does not affect liabilities or stockholders' equity, nor does it increase expenses.

A Company Performed Services for a Customer for Cash