A Business Renders Services to a Client and Issues a Sales

question 37

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 is TRUE at the time the invoice is issued?

• A) Equity will decrease.
• B) Total liabilities will increase.
• C) Total assets will decrease.
• D) Net income will increase.

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Definitions:

Assembly Line Technology

An efficient manufacturing process that divides work into specialized tasks sequentially arranged so that the product moves from one workstation to the next.

Aluminum

A lightweight and malleable metal used in a wide range of applications, from packaging and construction to transportation and electronics.

Number of Commercial Bakers

The number of commercial bakers refers to the total count of businesses or individuals that produce and sell baked goods on a large scale.

Income

The money received by a person or entity, typically in exchange for providing labor, goods, or services, or through investing.