Which one of the following adjustments will increase revenues?
A)Fees were not billed for services already performed.
B)Depreciation is recorded.
C)Supplies were used,but not recorded.
D)Interest is incurred on borrowed money,but not yet paid to the bank.
E)Wages have accrued,but will not be paid until next month.

Question

Quizplus · Accepted Answer

Billing for services performed but not billed will increase revenues as it is capturing revenue that was previously not recognized. Depreciation (B) is a non-cash expense and does not directly impact revenues. Using supplies without recording them (C) would decrease expenses, but not necessarily increase revenues. Interest incurred but not yet paid (D) is a liability and does not affect revenues. Similarly, wages that have accrued but not yet paid (E) are a liability and do not impact revenues.

Which One of the Following Adjustments Will Increase Revenues