Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 12 - No. 24)
What is the impact on the financial statements if a business provides services on credit?
Increases revenue.
Increases accounts receivable.
Increases cash.
Increases liabilities.
Explanation
The business has earned revenue (increases), and it has a right to receive payment in the future (accounts receivable, an asset, increases).
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