Revenues received during an accounting period increase owner's equity.

Question

Quizplus · Accepted Answer

Revenues are amounts earned by a business for goods sold or services provided during an accounting period. When revenues are received, they increase the amount of owner's equity in the business, as they represent an increase in assets (cash or accounts receivable) and an increase in the amount of capital invested in the business. Therefore, statement "Revenues received during an accounting period increase owner's equity" is true.

Revenues Received During an Accounting Period Increase Owner's Equity