A company performs services for a client on account.When the company receives the cash from the customer one month later:
A)a revenue account is increased.
B)a liability account is decreased.
C)there is no change in total assets.
D)an expense account is decreased.

Question

Quizplus · Accepted Answer

When the company receives cash from the customer, it increases the cash account (an asset) and decreases accounts receivable (also an asset), resulting in no change in total assets.

A Company Performs Services for a Client on Account