If services are performed on credit, then
A) assets will decrease.
B) liabilities will increase.
C) shareholders' equity will increase.
D) liabilities will decrease.

Name: If services are performed on credit, then A) assets will decrease. B) liabilities will increase. C) shareholders' equity will increase. D) liabilities will decrease.
Brand: Quizplus
Rating: 4.9 (33 reviews)

Question

Quizplus · Accepted Answer

When services are performed on credit, revenue is recognized, which increases shareholders' equity through an increase in retained earnings.

If Services Are Performed on Credit, Then