Revenues are ____ in shareholders' equity.
A) Decreases
B) Not included
C) Increases
D) None of these.

Question

Quizplus · Accepted Answer

Revenues represent the income earned by a company and they increase shareholders' equity through retained earnings. When revenues are recognized, they are added to the retained earnings portion of shareholders' equity, leading to an increase in overall equity. Therefore, the correct answer is "increases."

Revenues Are ____ in Shareholders' Equity