Frank Company earned $15,000 of cash revenue. Which of the following choices accurately reflects how this event affects the company's financial statements?
A) Option A
B) Option B
C) Option C
D) Option D

Question

Frank Company earned $15,000 of cash revenue. Which of the following choices accurately reflects how this event affects the company's financial statements? 
A) Option A 
B) Option B 
C) Option C 
D) Option D

Quizplus · Accepted Answer

Earning cash revenue increases assets (cash) and equity (retained earnings) on the balance sheet. It increases both revenue and net income on the income statement and is reported as a cash inflow for operating activities on the statement of cash flows.

Frank Company Earned $15,000 of Cash Revenue