Revenues are increased with ______ because they ______ owners' equity.
A)debits,decrease
B)credits,increase
C)debits,increase
D)credits,decrease

Question

Quizplus · Accepted Answer

Revenues increase with credits because they increase owners' equity. As revenue is earned, the company's goods or services are sold, which increase the company's assets (i.e., cash or accounts receivable). Simultaneously, the company's equity is increased through the revenue earned. Since revenue is a credit account, it is increased with a credit entry, hence choice B is correct.

Revenues Are Increased with ______ Because They ______ Owners' Equity

Revenues Are Increased with Because They Owners' Equity