If a Company Is Paid in Full for Services Provided

question 12

Multiple Choice

If a company is paid in full for services provided this month,how will the basic accounting equation be affected?

• A)Liabilities will decrease.
• B)Shareholders' equity will increase as revenue is recorded.
• C)Liabilities will increase.
• D)Shareholders' equity will increase as gains are recorded.

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Definitions:

Prescription Medications

Medically authorized drugs that require a healthcare professional's approval before they can be obtained by a patient.

Marketplace

A venue, physical or digital, where buyers and sellers interact to exchange goods, services, or information.

Face-to-Face

Direct interaction between two or more people in the same physical location.

Tangible Objects

Items that have a physical presence and can be perceived by touch.