A Business Performs Services for Its Customers

question 98

Multiple Choice

A business performs services for its customers.Payment is expected to be received next month.How does the performance of services affect the accounting equation?

• A) Liabilities increase; owner's equity decreases.
• B) Assets increase; owner's equity increases.
• C) Assets decrease; owner's equity decreases.
• D) Assets increase; owner's equity decreases.

---

Definitions:

Complaint Letter

A letter that challenges a policy or tries to get a decision changed.

Accommodation Expenses

Costs associated with providing housing or lodging, either temporarily or permanently, for individuals such as employees or guests.

Business Flight

A flight taken for business purposes, often prioritizing time-efficiency and convenience.

Resignation Letters

Written notifications by an employee to inform an employer of their decision to leave the company.