When a company performs a service and immediately collects the cash from the customer, which of the following would occur?
A)Stockholders' equity would decrease.
B)Assets would decrease.
C)Expenses would decrease.
D)Net income would increase.

Question

Quizplus · Accepted Answer

When a company performs a service and collects cash immediately, it increases its revenue, which in turn increases net income.

When a Company Performs a Service and Immediately Collects the Cash