Revenues have the effect of increasing contributed capital.

Question

Quizplus · Accepted Answer

Revenues do not have the effect of increasing contributed capital. Contributed capital refers to the amount of money that shareholders have invested in a company by purchasing its stock. Revenues represent the income generated by a company from its operations or sales. While revenues can increase a company's net income or profit, they do not directly increase contributed capital.

Revenues Have the Effect of Increasing Contributed Capital