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.

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Definitions:

Attributions

The process by which individuals infer the causes of their own and others' behavior.

Self-Fulfilling Prophecy

A belief or expectation that influences behavior in a way that causes the belief to become true.

Fundamental Attribution Error

The tendency to overemphasize personal characteristics and ignore situational factors in judging others' behavior.

Confirmation Bias

The inclination to seek out, understand, prefer, and remember information in a manner that reaffirms one’s already held beliefs or theories.