What would be the effect on the 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 means the customer will pay at a later date. This increases the business's Accounts Receivable (an asset) because it is money owed to the business, and it also increases Revenue because the business has earned income from providing the service. Therefore, Accounts Receivable (an asset) is debited, and Revenue is credited.

What Would Be the Effect on the Accounts If the Business