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When cash is received from a sale, the total amount of both assets and owner's equity is increased.

a. True
b. False

User Mirel Vlad
by
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1 Answer

2 votes

Answer:

a. True

Step-by-step explanation:

In case when the cash is received from the sale, so here the total assets is increased i.e. rise in current assets that is cash account and the stockholder equity is also increased as the revenue is also increased which ultimately increased the equity

The journal entry is

Cash Dr XXXXX

To Sales revenue XXXXX

(Being cash is received is recorded)

hence, the given statement is true

User Orr
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