Revenues are increases in retained earnings resulting from delivering goods or services to customers. Option A is incorrect because revenues increase retained earnings rather than decreasing it. Option B is incorrect because revenue is not a decrease in assets, but rather an increase in earnings. Option D is incorrect because revenues do not result in an increase in liabilities.

Solved

Revenues Are

Question 30

Multiple Choice

Revenues are:

A) decreases in retained earnings resulting from delivering goods or services to customers
B) decreases in assets resulting from delivering goods or services to customers
C) increases in retained earnings resulting from delivering goods or services to customers
D) increases in liabilities resulting from delivering goods or services to customers

Correct Answer: