When you record a cash sale using a Sales Receipt, which accounts are affected?

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Multiple Choice

When you record a cash sale using a Sales Receipt, which accounts are affected?

Explanation:
Recording a cash sale with a Sales Receipt captures money received and revenue earned at the moment of the sale. The accounts affected are Revenue, which increases to reflect the income from the sale, and Cash, which increases because cash is received. Accounts Receivable doesn’t change because there’s no credit extended—the payment is collected right away. If you also track inventory, you’d typically reduce Inventory and recognize Cost of Goods Sold, but the primary recorded impact shown here is revenue and cash.

Recording a cash sale with a Sales Receipt captures money received and revenue earned at the moment of the sale. The accounts affected are Revenue, which increases to reflect the income from the sale, and Cash, which increases because cash is received. Accounts Receivable doesn’t change because there’s no credit extended—the payment is collected right away. If you also track inventory, you’d typically reduce Inventory and recognize Cost of Goods Sold, but the primary recorded impact shown here is revenue and cash.

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