If Services Are Rendered on Account, Then

question 55

Multiple Choice

If services are rendered on account, then

• A) assets will decrease.
• B) liabilities will increase.
• C) stockholders' equity will increase.
• D) liabilities will decrease.

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Definitions:

Estimable

Capable of being estimated or approximately calculated.

Note Discounted

A financial term referring to a promissory note that is sold for less than its face value before it reaches maturity.

Interest Calculations

The process of figuring out the amount of interest to be added to the principal amount of a loan or deposit, based on the rate and the time.

Payment Maturity

The date on which a financial obligation must be repaid in full.