Performing services on account would:
A)decrease both assets and liabilities.
B)increase assets and decrease stockholders' equity.
C)decrease revenues and decrease stockholders' equity.
D)increase net income and stockholders' equity.

Question

Quizplus · Accepted Answer

Performing services on account means providing a service and creating a receivable for the amount owed. This would increase assets (accounts receivable) and revenue (earnings from the service performed). Both of these would increase net income, which would in turn increase stockholders' equity.

Performing Services on Account Would