A revenue transaction may result in all of the following except:
A)An increase in assets.
B)An increase in owners' equity.
C)A positive cash flow in either the past,present,or future.
D)An increase in liabilities.

Question

Quizplus · Accepted Answer

A revenue transaction involves the sale of goods or services in exchange for cash or other consideration. This results in an increase in assets, such as cash or accounts receivable, and an increase in owners' equity, specifically in the form of retained earnings. However, it does not result in an increase in liabilities, as revenue is not a form of debt. Option C is incorrect as positive cash flow may or may not occur depending on whether the sale is made for cash or credit.

A Revenue Transaction May Result in All of the Following