A Business Renders Services to a Client and Issues a Sales

question 109

Multiple Choice

A business renders services to a client and issues a sales invoice. The amount will be collected from the customer at a later time. Which of the following would be true at the time the invoice is issued?

• A)Owner's equity will decrease.
• B)Total liabilities will increase.
• C)Total assets will decrease.
• D)Net income will increase.

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Definitions:

Unlikely Explanation

A rationale or reasoning that appears improbable or does not fit the evidence or circumstances.

Measurable Data

Information that can be quantified or expressed numerically, allowing for analysis and comparison.

Knowledge Base

A centralized repository for information, including FAQs, documents, and data, which is used to aid in decision-making and problem-solving.

Larger-Than-Prescribed Doses

The act of taking medication in quantities greater than those recommended by a healthcare provider, which can lead to adverse effects or harm.