Sold merchandise on account would have which effect on the following categories?
A)Total Accounts Receivable would increase.
B)Total revenues would be increased.
C)Total liabilities would not be affected.
D)A and B would definitely occur.

Question

Quizplus · Accepted Answer

Selling merchandise on account means the customer owes the business money, which increases the total amount of accounts receivable. This transaction also generates revenue for the business, thus increasing total revenues. There is no effect on total liabilities. Therefore, both option A and B are correct.

Sold Merchandise on Account Would Have Which Effect on the Following