In an analysis of transactions using the balance sheet equation,revenues and expenses are adjustments to the ________ account.
A)Accounts Receivable
B)Accounts Payable
C)Cash
D)Capital Stock
E)Retained Earnings

Question

Quizplus · Accepted Answer

Revenues increase Retained Earnings, while expenses decrease Retained Earnings. Therefore, revenues and expenses are adjustments to the Retained Earnings account.

In an Analysis of Transactions Using the Balance Sheet Equation,revenues