a Earned revenue on account b Collected cash from accounts r

a. Earned revenue on account.

b. Collected cash from accounts receivable.

c. Earned cash revenue.

d. Issued common stock.

Ad dison Company experienced an accounting event that affected its financial statements as indicated below: Assets Liab. Equity Rev. - Exp. Net Inc. Cash Flow NA NA NA Which of the following accounting events could have caused these effects on Addison\'s statements?

Solution

Answer:

a. Earned revenue on account.

Explanations for the above answer is as under

Here addision company has sales revnue on accounts that\'s why the Account receivable (assets) increase (+) and on the other hand increase in sales increase in revenue (+) so net income will also increases (+) and ultimately Equity (retained earnings) will also increses