Providing services to customers on account causes assets to increase and stockholders' equity to increase.

Name: Providing services to customers on account causes assets to increase and stockholders' equity to increase.
Brand: Quizplus
Rating: 4.8 (36 reviews)

Question

Quizplus · Accepted Answer

When services are provided to customers on account, accounts receivable (an asset) increases while revenue (part of stockholders' equity) increases as well. Thus, both assets and stockholders' equity increase.

Providing Services to Customers on Account Causes Assets to Increase