Which of the following accounts would be increased with a credit? Group of answer choices Accounts Payable; Unearned Revenue; Common Stock Cash; Accounts Receivable; Common Stock Dividends; Accounts Receivable; Unearned Revenue Land; Accounts Payable; Dividends

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05-07-2022
Business

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Which of the following accounts would be increased with a credit? Group of answer choices Accounts Payable; Unearned Revenue; Common Stock Cash; Accounts Receivable; Common Stock Dividends; Accounts Receivable; Unearned Revenue Land; Accounts Payable; Dividends

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sharmaaashutosh169 sharmaaashutosh169 · Answer 1 · 2022-07-14T01:29:51-04:00

A credit is applied to an Accounts Receivable account.

Because the owner's capital account has a regular debit balance, the owner's equity account is boosted on the debit side.

The sum of money owed to a company for products or services provided or utilized but not yet paid for by customers is known as accounts receivable. These are classified as a current asset on the balance sheet. AR is any amount of money due by clients for credit purchases.

The accounts receivable turnover ratio or days sales outstanding can be used to assess a company's AR strength.

A turnover ratio analysis can be performed to forecast when the AR will be received.

To know more about accounts receivable click here:

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