The reason that revenue is recorded by a credit entry to a revenue account is:
A)That revenue always involves a debit to the Cash account.
B)Explained by the realization principle.
C)Explained by the matching principle.
D)That revenue increases owners' equity.

Question

Quizplus · Accepted Answer

Revenue is recorded by a credit entry because it increases owners' equity, which is on the credit side of the accounting equation.

The Reason That Revenue Is Recorded by a Credit Entry