A transaction has been recorded in the general journal of Van Buren Company as follows:

Which of the following describes how this entry affects the company's financial statements when it is posted to the ledger accounts?

A)Option A
B)Option B
C)Option C
D)Option D

Question

A transaction has been recorded in the general journal of Van Buren Company as follows:

Which of the following describes how this entry affects the company's financial statements when it is posted to the ledger accounts?

A)Option A 
B)Option B 
C)Option C 
D)Option D

Quizplus · Accepted Answer

The debit to cash increases assets and the credit to service revenue increases revenue,which increases net income and stockholders' equity (retained earnings).The transaction is reported as a cash inflow from operating activities.

A Transaction Has Been Recorded in the General Journal of Van