How is owner’s equity affected when services are sold on account?

Effect on owner’s equity affected when services are sold on account is:

Owner's equity increase (except when credit risk is incurred).

Explanation:

No matter the mode of sales, the owner's equity increases when services are sold.  This implies that whether services are sold on account or for cash, the owner's equity will increase through the Retained Earnings.  However, when credit loss arises from credit defaults, then the owner's equity will reduce.  This is why a business must review the credit-worthiness of its customers before granting credit terms.  Credit defaults are common in business and remain part of the business risk.

for submitting your question to

the answer to your question is : c) a government agency or homeowner

due to his line of work, he is most likely employed by a government agency or homeowner due to the other choices not being logical haha.