Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 20 - No. 40)
What impact does a sale on account have on the seller's balance sheet?
Assets and liabilities increase.
Assets increase, equity increases.
Assets decrease, equity decreases.
Liabilities decrease, equity increases.
Explanation
Selling on account increases accounts receivable (an asset) and increases sales revenue, which increases equity.
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