a company has preformed a service for a customer and is expected to receive payments in...
a company has preformed a service for a customer and is expected to receive payments in the next month. What is the effect on the accounting equation at the time of the service
Homework Answers
Services are provided to customers on credit, so assets in form of accounts receivable will increase. Service provided will increase revenue and thus net income and Owner's Equity.
Therefore,
Accounts receivable - Assets increase
owner’s equity increase
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a company has preformed a service for a customer and is expected
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