Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 12 - No. 47)
What is the impact on the accounting equation when the company provides services to a customer on account?
Assets increase, liabilities increase
Assets decrease, owner's equity increases
Assets increase, owner's equity increases
Liabilities increase, owner's equity decreases
Explanation
Assets increase (Accounts Receivable), owner's equity increases (Revenue).
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