In a double-entry system, which account is credited when goods are sold for cash?
Correct answer: B. Sales account
- A. Cash account
- B. Sales account
- C. Purchases account
- D. Inventory account
Explanation
Cash is received, so the Cash account is debited. Sales revenue is credited to record the income earned from the transaction.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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