Revenues are the gross increases in stockholders' equity resulting from business activities. This means that revenues are the amount of money that a company earns from the sale of its products or services, and this amount is added to the company's equity or net worth. Revenues are not the cost of assets consumed or services used, nor are they actual or expected cash outflows.

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Revenues Are

Question 34

Multiple Choice

Revenues are

A) the cost of assets consumed during the period.
B) gross increases in stockholders' equity resulting from business activities.
C) the cost of services used during the period.
D) actual or expected cash outflows.

Correct Answer: