Which accounts are affected when the company provides services to a cash customer?
A)Assets and Capital
B)Liabilities and Capital
C)Assets and Revenue
D)None of the above are correct.

Question

Quizplus · Accepted Answer

When a company provides services to a cash customer, it involves a transaction that increases the company's assets (cash) and revenue. Therefore, the correct choice is C, as the accounts affected are assets (cash) and revenue. The other options, such as liabilities and capital, do not apply to this transaction.

Which Accounts Are Affected When the Company Provides Services to a Cash