Hill's Copy Service performed photocopy services during December,20A,but had not collected any cash (or other assets)from its customers by the end of the accounting period,December 31,20A.What effect did performing these services have on the fundamental accounting model?
A)Increased assets and increased liabilities.
B)Increased assets and increased shareholders' equity.
C)Increased assets and decreased shareholders' equity.
D)Decreased liabilities and decreased shareholders' equity.

Question

Quizplus · Accepted Answer

Performing services increases accounts receivable (an asset) and increases revenue, which in turn increases shareholders' equity.

Hill's Copy Service Performed Photocopy Services During December,20A,but Had Not