Which of the following transactions will result in an increase in operating income as of the date of the transaction?
A) The sale of plant and equipment at a gain.
B) Collection of cash from a customer for services to be provided at a later date.
C)Providing a service to a customer on account.
D)The receipt of cash dividends from an investment.

Question

Quizplus · Accepted Answer

Providing a service to a customer on account increases operating income because it recognizes revenue earned from services provided, even if cash has not yet been received.

Which of the Following Transactions Will Result in an Increase