What would be the effect on accounts if the business provided services to a customer on account?
A) An asset would be debited and an expense credited.
B) Capital would be debited and revenue credited.
C) An asset would be debited and revenue credited.
D) An asset would be debited and Capital credited.

Question

Quizplus · Accepted Answer

When a business provides services to a customer on account, it is essentially providing credit to the customer, which creates an account receivable (an asset) for the business. Therefore, the asset account would be debited, and the revenue account (since the business has earned revenue for providing the services) would be credited. This transaction does not involve capital or expenses.

What Would Be the Effect on Accounts If the Business