A journal entry to record revenue could include each of the following,except:
A)A credit to a revenue account.
B)A credit to the Capital Stock account.
C)A debit to Cash.
D)A debit to Accounts Receivable.

Question

Quizplus · Accepted Answer

A credit to the Capital Stock account does not relate to recording revenue. The other options all represent ways revenue can be recorded in a journal entry: a credit to a revenue account recognizes the revenue earned, a debit to Cash records the payment received for the revenue, and a debit to Accounts Receivable records the increase in the company's expected future cash inflows from revenue earned on credit.

A Journal Entry to Record Revenue Could Include Each of the Following,except