If a company's revenues are greater than its expenses, increasing its revenues and decreasing its expenses will
A) decrease net income.
B) increase net income.
C) decrease assets.
D) not affect owner's equity.

Question

Quizplus · Accepted Answer

Increasing revenues and decreasing expenses will lead to a higher net income, as there will be more money coming in and less going out. This will lead to a stronger financial position for the company.

If a Company's Revenues Are Greater Than Its Expenses, Increasing