Revenues are:
A)The same as net income.
B)The excess of expenses over assets.
C)Resources owned or controlled by a company.
D)The increase in equity from a company's sales of products and services.
E)The costs of assets or services used.

Question

Quizplus · Accepted Answer

Revenues are defined as the increase in equity from a company's sales of products and services. They are not the same as net income (A), which is calculated by subtracting expenses from total revenues. Revenues are also not the excess of expenses over assets (B) or the resources owned or controlled by a company (C), which refer to liabilities and assets. Finally, revenues are not the costs of assets or services used (E), which refer to expenses.

Revenues Are