Question

In a sale for cash, which accounts are affected?

A. Cash and Accounts Payable
B. Accounts Receivable and Sales Revenue
C. Supplies Expense and Cash
D. Common Stock and Retained Earnings

Answer 1

In a sale for cash, the accounts that are affected are Cash and Sales Revenue.

Step-by-step explanation:

In a sale for cash, the accounts that are affected are Cash and Sales Revenue.

When a sale is made for cash, the transaction increases the Cash account because cash is received, and it also increases the Sales Revenue account because a sale has been made and revenue is earned.

For example, if a company sells a product for $100 in cash, the Cash account would increase by $100, and the Sales Revenue account would increase by $100.