If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:

A) Accounts payable decreases $10,000.
B) Accounts payable increases $10,000.
C) Cash increases $10,000.
D) Revenue increases $10,000.
E) Revenue decreases $10,000

Question

Jasmine Wyatt · Accepted Answer

Final Answer : D, Explanation :  The revenue account increases by $10,000 when the client is billed for the consulting work completed. This is the recognition of the company's earnings from the work performed. The other options do not apply in this scenario as they are not affected by the billing of a client. Accounts payable would only be affected if the company had received an invoice and had not yet paid it, and cash would only increase if the client had actually paid the invoice.

If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:

A) Accounts payable decreases $10,000.
B) Accounts payable increases $10,000.
C) Cash increases $10,000.
D) Revenue increases $10,000.
E) Revenue decreases $10,000

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Learning Objectives

Related questions

If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:A) Accounts payable decreases $10,000.B) Accounts payable increases $10,000.C) Cash increases $10,000.D) Revenue increases $10,000.E) Revenue decreases $10,000

Definitions

Learning Objectives

Learning Objectives

Related questions

If Houston Company billed a client for $10,000 of consulting work completed,the accounts receivable asset increases by $10,000 and:

A) Accounts payable decreases $10,000.
B) Accounts payable increases $10,000.
C) Cash increases $10,000.
D) Revenue increases $10,000.
E) Revenue decreases $10,000