A Business Renders Service to a Client and Sends Out

question 72

Multiple Choice

A business renders service to a client and sends out 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 when the invoice is sent out?

• 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:

Inflexibility

The lack of willingness or ability to change or adapt as circumstances require.

Rapid Change

A swift adjustment or transformation experienced by an individual, organization, or environment.

Methods

Systematic procedures or techniques used to accomplish tasks or conduct research.

Employer-valued Attitudes

Traits or dispositions appreciated by employers, such as punctuality, work ethic, and flexibility, that contribute to organizational goals.