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.

Understand the sources of contract law and recognize different types of contracts and agreements.

Grasp the purpose and enforceability of quasi-contracts and the principle of preventing unjust enrichment.

Identify and understand specific contractual arrangements and their legal implications, such as the muta'a marriage contract.

Differentiate between formal and informal (simple) contracts.

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Definitions:

Clears

typically refers to the process by which transactions are settled or reconciled between parties in trading or financial contexts.

Hold

A directive to keep, reserve, or delay an action or transaction, often used in financial and organizational contexts.

Ordinary Care

The degree of caution and attention to duty that a reasonably prudent person would use in similar circumstances.

Charge Back Rights

Charge back rights allow consumers to dispute a charge and potentially secure a refund for transactions found to be fraudulent or problematic.