When a company earns revenue on account?

a. the asset account, accounts receivable, increases.

b. a revenue account increases.

c. liabilities are not affected.

d. All of the answers are correct.

Question

Sierra Ward

Business

8 April, 05:11

When a company earns revenue on account?

a. the asset account, accounts receivable, increases.

b. a revenue account increases.

c. liabilities are not affected.

d. All of the answers are correct.

+1

Answers (1)

Know the Answer?

Willow Jacobson · Answer 1

d. All of the answers are correct.

Explanation:

When a company earns revenue on account or when a sale is made or service is rendered, the following happens:

It's asset account and receivable increases,

The revenue account rises,

Liability is not affected because liabilities affects operations such as investment or financing activities not sales operations.

When a company earns revenue on account?a. the asset account, accounts receivable, increases.b. a revenue account increases.c. liabilities are not affected.d. All of the answers are correct.

When a company earns revenue on account?

a. the asset account, accounts receivable, increases.

b. a revenue account increases.

c. liabilities are not affected.

d. All of the answers are correct.