Revenues are
A) Impacted by debits and credits in the same way that expenses are impacted by debits and credits.
B) A subdivision of equity, providing information about why equity increased.
C) Reported on the statement of financial position as a current item.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

Revenues are indeed a subdivision of equity, as they represent increases in equity resulting from the delivery of goods or services to customers, which is why equity increases. They are not impacted by debits and credits in the same way expenses are, as revenues increase with credits and decrease with debits, opposite to expenses. Revenues are reported on the income statement, not the statement of financial position.

Revenues Are