Which of the following statements is true of revenue?

Question

Quizplus · Accepted Answer

Revenues are earned income, and as such, they increase the stockholders' equity of the company. Therefore, a revenue account's normal balance is a credit balance. Option A is incorrect, as revenues actually increase stockholders' equity. Option B is incorrect, as revenues do not decrease stockholders' equity. Option C is also incorrect, as the normal balance of a revenue account is a credit balance, not a debit balance.

Which of the Following Statements Is True of Revenue