Revenues are
A)increases in liabilities resulting from delivering goods or services to customers.
B)decreases in net assets resulting from delivering goods or services to customers.
C)increases in net assets resulting from delivering goods or services to customers.
D)decreases in retained earnings resulting from delivering goods or services to customers.
E)another term for assets.

Question

Quizplus · Accepted Answer

Revenues are increases in net assets resulting from delivering goods or services to customers. This means that the company's assets increase due to the delivery of goods or services, which in turn increases its overall net worth. Option A is incorrect as revenues do not result in increases in liabilities. Option B is also incorrect as it refers to a decrease in net assets, which is not the case with revenues. Option D is incorrect as retained earnings can only be affected by net income or loss, not revenue. Option E is incorrect as revenues are not synonymous with assets.

Revenues Are