Frank Company earned $15,000 of cash revenue.Which of the following accurately reflects how this event affects the company's financial statements?

Question

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