An Increase in a Revenue

question 3

Multiple Choice

An increase in a revenue:

• A) decreases net income.
• B) decreases assets.
• C) increases liabilities.
• D) increases stockholders' equity.

---

Definitions:

Capital Lease

A long-term lease agreement that allows the lessee to effectively own an asset without having it on their balance sheet.

Lease Transfers Ownership

A lease agreement that includes a provision allowing the lessee to acquire ownership of the asset at the end of the lease term.

NPV

NPV (Net Present Value) is a financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Cash Inflow

The total amount of money being transferred into a company, usually from operations, investments, or financing activities.