When cash is received from sales, the change in the owner's equity is usually recorded

Name: When cash is received from sales, the change in the owner's equity is usually recorded
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Question

Quizplus · Accepted Answer

When cash is received from sales, it is typically recorded in a separate revenue account. This is because revenue from sales is considered an income for the business, which increases the owner's equity but is tracked separately from the owner's capital account for clarity and accuracy in financial reporting.

When Cash Is Received from Sales, the Change in the Owner's