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

Question

Quizplus · Accepted Answer

Performing services on account increases both the assets (accounts receivable) and stockholders' equity (revenues), resulting in an increase in net income and stockholders' equity. Therefore, option D is the correct choice.

Performing Services on Account