If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:
A)Accounts payable decreases $10,000.
B)Accounts payable increases $10,000.
C)Cash increases $10,000.
D)Revenue increases $10,000.
E)Revenue decreases $10,000

Question

Quizplus · Accepted Answer

When a client is billed for consulting work completed, it is considered revenue earned by the company. Therefore, the revenue account increases by $10,000. There is no change to accounts payable or cash in this scenario.

If Houston Company Billed a Client for $10,000 of Consulting