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19 August, 06:05

When a company earns revenue on account?

a. the asset account, accounts receivable, increases.

b. a revenue account increases.

c. liabilities are not affected.

d. All of the answers are correct.

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Answers (1)
  1. 19 August, 08:02
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    d. All of the answers are correct.

    Explanation:

    When a company earns revenue on account or when a sale is made or service is rendered, the following happens:

    It's asset account and receivable increases,

    The revenue account rises,

    Liability is not affected because liabilities affects operations such as investment or financing activities not sales operations.
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