Question

If services are rendered on account, then ________?

1) The payment is received immediately
2) The payment is received at a later date
3) The payment is not received
4) The payment is received in installments

Answer 1

When services are rendered on account, payment is expected at a later date, not immediately. The business records it as accounts receivable, indicating the client owes them for services provided.

Step-by-step explanation:

If services are rendered on account, then the correct answer is that the payment is received at a later date. When a company provides services on account, it means they have performed the services but have agreed to allow the customer to pay at a future date, often according to terms agreed upon by both parties. The business will record this transaction as accounts receivable, which represents the money owed by the customer for the services rendered.