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:

Cytokinesis

The process during cell division in which the cytoplasm of a single eukaryotic cell is divided into two daughter cells.

Meiosis I

The first meiotic division; consists of prophase I, metaphase I, anaphase I, and telophase I; see meiosis.

Meiosis II

The second meiotic division; follows interkinesis and consists of prophase II, metaphase II, anaphase II, and telophase II; see meiosis.

Interphase

The phase of the cell cycle during which the cell prepares for division by replicating its DNA and increasing in size.