A Revenue Account

question 184

Multiple Choice

A revenue account

• A)is increased by debits.
• B)is decreased by credits.
• C)has a normal balance of a debit.
• D)is increased by credits.

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Definitions:

Present Value Factors

Numeric factors used in calculating the present value of future cash flows, reflecting the time value of money.

Interest Revenue

Income earned from investments in interest-bearing assets like bonds, loans, and savings accounts.

Bargain Purchase Option

An option in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the expected fair market value.

Equipment Leased

Assets acquired for use over a specified period through a rental agreement, where ownership remains with the lessor.