In transaction analysis,revenues and expenses that arise in different transactions are recorded in the ________ column of the accounting equation.
A)Multistep
B)Common Stock
C)Dividends
D)Retained Earnings

Question

Quizplus · Accepted Answer

Revenues increase retained earnings and expenses decrease retained earnings. Retained earnings is a part of the equity section of the accounting equation, making D the correct answer. The other options are either revenue or equity accounts, but not where revenues and expenses are recorded.

In Transaction Analysis,revenues and Expenses That Arise in Different Transactions