Revenues:
A)decrease assets.
B)increase stockholders' equity.
C)increase liabilities.
D)decrease expenses.

Name: Revenues: A)decrease assets. B)increase stockholders' equity. C)increase liabilities. D)decrease expenses.
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Question

Quizplus · Accepted Answer

Revenue is a subcategory of Retained Earnings,which is a component of stockholders' equity.Net income increases Retained Earnings.Since net income equals the excess of revenues over expenses,eventually,revenues increase Retained Earnings.