Credits To Revenue Accounts Ultimately Result In A N

Debits to revenue accounts ultimately result in a n.

Credits to revenue accounts ultimately result in a n. A decrease in stockholders equity and assets. Answer to credits to revenue accounts ultimately results in. C decrease in assets and liabilities. Decrease in owners equity b.

Question 3 credits to revenue accounts ultimately result in. A a decrease in owners equity b an increase in owners equity c a decrease in assets d an increase in liabilities. For example when you sell product to a customer you normally debit cash or accounts receivable and you credit sales revenue. Increase in owners equity c.

Credits increase revenue accounts debits decrease revenue accounts. A an increase in liabilities b a decrease in assets c a decrease in owners equity d an. Revenue accounts normally have a credit balance. If the customer pays within the discount period and takes the discount x will record a journal entry that includes.

Credits to revenue accounts ultimately result in. B increase in stockholders equity and assets. Therefore if you make an entry which results in a credit to a revenue account you are increasing revenue and increasing retained earnings. View notes cw490412 showfile contentid 147077 from ms e 240 at stanford university.

Credits to revenue accounts ultimately result i9 a. X company which uses the gross method and a perpetual inventory system sold 2000 of merchandise on account with the credit terms of 2 10 n 30. An increase in a revenue causes an increase in equity so the debits and credits will be the same for revenue accounts as they are for equity. This results in an addition to the machinery fixed assets account with a debit and an increase in the accounts payable liability account with a credit.

Keeps track of the company s earnings from sales services etc. Arnold corporation also buys a machine for 15 000 on credit. Asset accounts and liability accounts are increased by and respectively. A decrease in assets b.

Decrease in assets 1. Increases in stockholders equity as a result of selling services or products to customers are known as a expenses. Credits to revenue accounts ultimately result in a n.