Increases in equity from a company's sales of products or services are:
A)Assets.
B)Revenues.
C)Liabilities.
D)Stockholders' Equity.
E)Expenses.

Question

Quizplus · Accepted Answer

Increases in equity from sales of products or services are known as revenues. Revenues increase stockholders' equity by increasing the company's net income. Assets and liabilities are separate categories on the balance sheet, while expenses are decreases in stockholders' equity.

Increases in Equity from a Company's Sales of Products or Services