Revenues are a subdivision of equity because they represent the income earned by a company, which contributes to an increase in equity. They are not reported on the statement of financial position as a current item, and they are impacted by debits and credits differently than expenses.

Solved

Revenues Are

Question 58

Multiple Choice

Revenues are

A) Impacted by debits and credits in the same way that expenses are impacted by debits and credits.
B) A subdivision of equity, providing information about why equity increased.
C) Reported on the statement of financial position as a current item.
D) All of the choices are correct regarding revenues.

Correct Answer: