Earning a revenue on account would:
A)increase liabilities.
B)decrease owner's equity.
C)increase accounts receivable.
D)decrease total assets.

Question

Quizplus · Accepted Answer

Earning revenue on account means that a service has been provided or goods have been sold but payment has not yet been received, thus increasing accounts receivable, which is an asset. This does not directly affect liabilities, owner's equity in a negative way, or decrease total assets.

Earning a Revenue on Account Would