A business renders service to a client and sends out a sales invoice.The amount will be collected from the customer at a later time.Which of the following would be TRUE at the time when the invoice is sent out?

Question

Quizplus · Accepted Answer

When a business renders a service and sends out a sales invoice, it recognizes revenue at that time, which increases net income. The transaction does not immediately affect owner's equity, total liabilities, or total assets directly in the sense of decreasing assets or increasing liabilities; instead, it increases assets in the form of accounts receivable.

A Business Renders Service to a Client and Sends Out