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:

Represents

To act on behalf of someone or something, often in a legal or official capacity.

Independent Contractor

An individual who provides services to another entity under a contract for services, retaining control over how the services are performed.

Specific Undertaking

A precise commitment or obligation that a party agrees to carry out.

Limited Liability Partnership

A partnership in which some or all partners (depending on the jurisdiction) have limited liabilities, protecting them from the debts of the partnership and other partners' actions.