Accounting Fundamentals Certification (AFC) Practice Test

When cash is received from sales in a state with no sales tax, two accounts are affected: the Cash account and the Sales Revenue account. The Cash account is increased because the business is receiving cash, which is an asset. This is recorded as a debit in the Cash account. Simultaneously, the Sales Revenue account is also increased to reflect the income generated from the sales made, which is recorded as a credit in the Sales Revenue account. In summary, the transaction involves a debit to Cash and a credit to Sales Revenue, thus affecting two accounts. This understanding highlights the dual aspect of accounting where every transaction has at least two entries—one that increases an asset and another that recognizes revenue, especially in the absence of sales tax.