The account used to record increases in owner's equity from the sale of goods or services is:
A)the capital account.
B)the cash account.
C)the fees income account.
D)the drawing account.

Question

Quizplus · Accepted Answer

The fees income account is used to record increases in owner's equity from the sale of goods or services. This account is a type of revenue account and is also referred to as the sales account or service revenue account. The capital account records the owner's initial investment and any additional investments or withdrawals. The cash account records only the inflows and outflows of cash, so it does not represent the total increase in owner's equity from the sale of goods or services. The drawing account records withdrawals by the owner, so it has the opposite effect on owner's equity as the fees income account.

The Account Used to Record Increases in Owner's Equity from the Sale