1. liabilities will increase.
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stockholders' equity will increase.
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liabilities will decrease.
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assets will decrease.
if you can answer, can you please explain it to me?
2 Answers
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you are providing services to a third party on account - so they are paying at a later date.
Assuming this is a profitable exercise:
Liabilities will not be affected - unless you are hiring someone to provide the service
Assets will not be affected - you are not selling an asset
Equity increases as you have made a profit so 2
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stockholders' equity will increase.