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jbthomason
Jun 11, 2009, 05:42 PM
If services are rendered for credit, then:
a) assets will decrease
b)liabilites will increase
c)owner's equity will increase
d)liabilities will decrease
niravpatari
Sep 17, 2009, 03:11 PM
answer is a
pready
Sep 17, 2009, 05:44 PM
If you provide a service on Credit then the journal entry is:
Debit Accounts Receivable for the amount
Credit Service Revenue for the amount

Assets will increase (Accounts Receivable)
This does not affect Liabilities
morgaine300
Sep 18, 2009, 01:18 AM
niravpatari, please read our guidelines about homework in the red print at the top of this forum. We are not here to just give answers to people. Especially when all you do is give an answer to a multiple choice with no explanation for it. (And your answer is incorrect anyway.)