The normal balance of a revenue account is a because revenues increase .

Question

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Revenue accounts have a credit normal balance because they increase shareholders' equity when the company earns revenue. A credit entry increases revenue, and a debit entry decreases revenue. Therefore, option A and B are not correct as they do not explain the normal balance of the revenue account. Option D is also incorrect as dividends are an expense and not a revenue account.

The Normal Balance of a Revenue Account Is a Because