Which of the following actions results in a credit to the Income account? A) Payment of a business expense B) Sale of a product C) Refund issued to a customer D) Withdrawal of cash... Which of the following actions results in a credit to the Income account? A) Payment of a business expense B) Sale of a product C) Refund issued to a customer D) Withdrawal of cash by the owner
Understand the Problem
The question is asking which action results in an increase (credit) to the Income account in accounting, implying that we need to evaluate the options given to determine which one pertains to income generation.
Answer
Sale of a product.
Sale of a product results in a credit to the Income account.
Answer for screen readers
Sale of a product results in a credit to the Income account.
More Information
In accounting, a credit to an income account represents revenue earned, such as from the sale of products or services. This reflects an increase in earnings.
Tips
A common mistake is confusing income with expenses or asset withdrawals. Ensure the transaction increases revenue to credit the Income account.
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