Performing a service on account would:
A)affect the accounting equation the same as if the service was performed for cash.
B)increase assets more than if the service had been performed for cash.
C)increase net income less than if the service had been performed for cash.
D)decrease expenses more than if the service had been performed for cash.

Question

Quizplus · Accepted Answer

Performing a service on account affects the accounting equation by increasing assets (accounts receivable) and increasing equity (revenue), just as it would if the service was performed for cash. The nature of the transaction (cash or on account) does not change the overall effect on the accounting equation.

Performing a Service on Account Would