A journal entry that records revenue must include:
A)A debit to Cash.
B)A credit to a revenue account.
C)A credit to the owners' equity account.
D)A debit to the owners' equity account.

Question

Quizplus · Accepted Answer

Recording revenue requires a credit to a revenue account, as revenue increases equity. A debit to Cash may be necessary if the revenue is received in the form of cash, but it is not always necessary. A credit to owners' equity account is not correct, as that would imply that the owners themselves earned the revenue. A debit to owners' equity account is also not correct, as that would decrease equity instead of increasing it.

A Journal Entry That Records Revenue Must Include