With respect to shareholders' equity,indicate which one of the following statements is correct.
A)Revenues are recorded as credits to the revenue accounts and expenses are recorded as debits to the expense accounts.
B)Revenues are recorded as debits to the revenue accounts and expenses are recorded as credits to the expense accounts.
C)Contributions (investments)by owners are recorded as debits to the share capital accounts.
D)Withdrawals by owners are recorded as credits to the share capital accounts.

Question

Quizplus · Accepted Answer

Revenues increase shareholders' equity and are recorded as credits, while expenses decrease it and are recorded as debits.

With Respect to Shareholders' Equity,indicate Which One of the Following