Multiple choice

When cash is received from sales, the change in owner's equity is

  1. recorded directly in owner's capital

  2. recorded on the debit side

  3. recorded in a separate revenue account

  4. recorded as interest revenue

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

When cash is received from sales, the revenue is recorded in a separate revenue account, which eventually increases owner's equity through the closing process.