An increase in revenue will always:
A)increase stockholders' equity.
B)increase assets.
C)decrease stockholders' equity.
D)decrease assets.

Question

Quizplus · Accepted Answer

An increase in revenue will result in an increase in the company's net income, which ultimately increases stockholders' equity. Option B is not the best choice as an increase in revenue may not necessarily increase assets. Option C and D are both incorrect as an increase in revenue will not lead to a decrease in either stockholders' equity or assets.

An Increase in Revenue Will Always