A business provider services to a customer on credit.Which of the following is correct: A.Assets increase and liabilities decrease at the time the cash is collected B.Assets increase and liabilities increase at the time of the sale C.Assets increase and the owner's equity increases at the time the cash is collected D.Assets increase and the owner's equity increases at the time of the sale

Q: Which of the following will you expect in an income statement?   Professional Fees Accounts…

A: The income statement includes all the revenue-related items and also all the expenses. Excess of…

Q: Provide such correct Answer

A: Option a) Performing a service on account for a customer: This option is correct because performing…

Q: What causes the decrease in Assets? A. Cash Purchases B. Liabilities C. Payment of Expenses D.…

A: Assets are a group of various resources that generate the revenue of the company. In this group,…

Q: A business provides services to a customer on credit.Which of the following is correct: A.Assets…

A: Every transaction has dual effect on the books of accounts. Total assets = Total liabilities +…

Q: e of an office building B. Depreciation of vehicles C. Maintenance of machinery D. Sales discount…

A: Income statement records income and expenses. It shows the net income or loss of a company for a…

Q: 1) Analyze the following transactions. Indicate which accounts are affected and whether they will…

A: The balance sheet represents that assets are equal to the sum of liabilities and stockholders'…

Q: The purchase of office equipment on credit increases total assets and total liabilities Select one:…

A: Assets are the resources owned by the entity. These may be current or non-current. Liabilities are…

Q: Which of the following accounts is not a permanent account?   Select one: a. Utilities Expense b.…

A: A permanent account is the account which is not closed at year end and same is carried to balance…

Q: he receipt of ________ from a customer increases assets and liabilities. Select answer from the…

A: A balance sheet is a statement of assets, liability, and equity. It is prepared after the income…

Q: Multiple choice: 1. Collection of an account receivable would: A.decrease liabilities B.have no…

A: Accounts receivable is a current asset that is to be received from a debtor. When collection of…

Q: Which business transaction will affect the quick ratio?     a. Purchase a fixed asset with money…

A: The quick assets ratio is calculated as quick assets divided by current liabilities.

Q: I. Multiple Choice Directions: Choose the letter corresponding to the correct answer for each of the…

A: “Since you have asked multiple sub-parts, we will solve the first three sub-parts for you. If you…

Q: The value of a business is determined by   a. what a buyer with the cash is prepared to pay.   b.…

A: Business of the owner can be valued by many methods. Generally need for valuation arises when there…

Q: When cash is paid for rent, Rent Expense is ____. a. increased by a debit b. decreased by a debit c.…

A: Definition: Rules of Debit and Credit: Following rules are followed for debiting and crediting…

Q: Multiple choice: 1. Earning revenue on account: A. decrease assets B. increases liabilities C.…

A: 1. Earning revenue on account:  It means supplying goods or services on account and payment will be…

Q: When a business owner sells merchandise to or provides a service for a customer on account instead…

A: Sales: Sales is the contract between the buyer and the seller, where the agreement is made to…

Q: Revenue is properly recognized: Multiple Choice O When the customer makes an order. Only if the…

A: Revenue is the total amount of income generated by the sale of goods or services.According to the…

Q: The​ owners' claims to the assets of the business are called​ ________.     A.equity   B.expenses…

A: As per the accounting equation,  Assets = Liabilities + Equity  and such relation always holds true.