Question

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.

Answer 1

d.All of the answers are correct.

Step-by-step 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.