In a fictitious revenue scheme, the debit side of the entry typically goes to which account?

• A. Accounts Receivable
• B. Cash
• C. Accounts Payable
• D. Inventory

Answer: (A)

In double-entry accounting, recognizing revenue on credit involves debiting an asset account to reflect money owed by customers and crediting revenue to record the income. In a fictitious revenue scheme, the common pattern is to debit Accounts Receivable to create a receivable for the fake sale, while crediting Revenue to inflate income. Debit to Cash would only occur if cash actually changes hands, which isn’t implied by a typical credit sale entry. Debit to Accounts Payable or Inventory doesn’t fit the revenue-recognition pattern for a sale. So the debit side is placed in Accounts Receivable.