The Normal Balance of a Revenue Account Is a Because

question 17

Multiple Choice

The normal balance of a revenue account is a because revenues increase .

• A)debit, expenses
• B)debit, stockholders' equity
• C)credit, stockholders' equity
• D)debit, assets

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Definitions:

Revenues

The total income generated from normal business operations and other activities over a specific time period.

Expenses

The costs incurred in the process of generating revenue, including operational, administrative, and sales costs.

Debits

In accounting, an entry made on the left side of an account, increasing asset or expense accounts, or decreasing liability, equity, or revenue accounts.

Credits

Entries that increase liabilities or equity on the balance sheet or reduce assets.