Question

Question 10 For the journal entry-- Dr. Accounts Receivable 4800; Cr. Consulting Revenues 4800, what is the correct analysis of the journal entry? A Accounts Receivable Asset Increases: Consulting Revenues, Equity-Revenue Decreases 6. Accounts Receivable Asset, Increases, Consulting Revenues, Equity Revenue Increase Accounts Receivable, Asset, Decreases Consulting Revenues, Equity-Revenue increases O D. Accounts Receivable, Asset Decreases Consulting Revenues, Equity-Expense Increases E. None of the above Moving to the next question prevents changes to this answer.

Answer 1

Solution:

B. Accounts receivable asset, increases, consulting revenues , equity revenue increase

Explanation:

Accounts receivable is an asset when an asset is debited it increases and when it is credited it decrease.Here Accounts receivable is debited so, it increases.

Consulting revenue is an income, according to nominal account all expenses and losses are debited and income & gains are credited. Here consulting revenue is credited so it also increases.

Equity revenue is also increase because Income is added to equity reserves.