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Question 8 (1 point) Listen Saved ABC Co. follows the accrual basis of accounting and performs a service on account in December. The service was billed in the amount of $4,500. ABC Co. debited Accounts Receivable for $4,500 and credited Service Revenue for $4,500. The effect of this entry on the balance sheet of ABC is to increase assets by $4,500 and to Decrease Liabilities By $4,500 Increase Equity By $4,500 Decrease Equity by $4,500 Increase Liabilities by $4,500

ABC Co. follows the accrual basis of accounting and performs a service on account in December. The service was billed in the amount of $4,500. ABC Co. debited Accounts Receivable for $4,500 and credited Service Revenue for $4,500. The effect of this entry on the balance sheet of ABC is to increase assets by $4,500 and to Decrease Liabilities By $4,500 Sto Increase Equity By $4,500 Decrease Equity by $4,500 Increase Liabilities by $4,500