Question

2 If Houston Company billed a client for $19.000 of consulting work completed, the accounts receivable asset increases by $19,000 and 01:09:36 Multiple Choice Revenue decreases $19000 Revenue increases $19.000 Cash increases $19.000 Me < Prev 2 of 30 Ne> O RI wpe here to search

Answer 1

Revenue increases $19000 Revenue decreases when there is sales retum. The option (b) is correct Explanation If Houston Compony billed a client for $ 19000 of consulting worle Completed, the accounts receivable asset increases and Revenue also increases by $19000. Revenue cue boneloone and in creases for billing clients as $19000 by receivable. sales Cash is neithey increases nor decreases as there is no involve -ment of Cash If we journalise the entry will be Accounts Debit Credit Accounts Receivable $19000 Sales Revenue $190oo.