Earning revenue increases owners' equity and expenses reduce owners' equity,therefore,revenues are recorded with debit entries and expenses are recorded with credit entries.

Name: Earning revenue increases owners' equity and expenses reduce owners' equity,therefore,revenues are recorded with debit entries and expenses are recorded with credit entries.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is incorrect. Revenues are actually recorded with credit entries and expenses are recorded with debit entries.

Earning Revenue Increases Owners' Equity and Expenses Reduce Owners' Equity,therefore,revenues