If a company provides services to a customer on credit, the company providing the service should credit Accounts Receivable.
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Q29: An owner's withdrawal account normally has a
Q30: A debit entry is always an increase
Q31: The purchase of supplies on credit should
Q32: A revenue account normally has a debit
Q33: The debt ratio is calculated by dividing
Q35: The higher a company's debt ratio, the
Q36: Asset accounts normally have debit balances and
Q37: A transaction that credits an asset account
Q38: The debt ratio helps to assess the
Q39: Credits always increase account balances.
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