Explain how service revenue on credit affects the account equation

Accounting equation:

Assets = Liabilities + Shareholders' equity

Shareholders' equity = Shareholders' Fund + Retained earnings

Retained earnings = Net income + Beginning balance of retained earnings

The net income depends upon the revenue earned and the expenses of the company. The service revenue on credit means the revenue is earned. When revenue increases, the net income increases, and when net income increases it increases the retained earnings and this affects the shareholder's equity, and hence service revenue on credit affects the account equation.