When a Company Performs a Service and Immediately Collects the Cash

question 53

Multiple Choice

When a company performs a service and immediately collects the cash from the customer, which of the following would occur?

• A) Net income would increase.
• B) Assets would decrease.
• C) Expenses would decrease.
• D) Shareholders' equity would decrease.

---

Definitions:

Theocratic Group

An organization or society that is governed by religious leaders and based on religious laws.

Atheist Group

A community or organization of individuals who do not believe in the existence of gods or a divine being.

Totalitarian

A political system in which the state holds total authority over society and seeks to control all aspects of public and private life.

Propaganda

Information, especially of a biased or misleading nature, used to promote a political cause or point of view.