Which of the Following Statements About Revenue Is CORRECT

question 18

Multiple Choice

Which of the following statements about revenue is CORRECT?

• A)Revenues increase owners' equity, so a revenue account's normal balance is a debit balance.
• B)Revenues decrease owners' equity, so a revenue account's normal balance is a credit balance.
• C)Revenues increase owners' equity, so a revenue account's normal balance is a credit balance.
• D)Revenues decrease owners' equity, so a revenue account's normal balance is a debit balance.

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Definitions:

Degrees of Freedom

The count of independent pieces of information available to estimate another statistic, crucial in defining the distribution of various test statistics.

Contingency Table

A table used in statistics to display the frequency distribution of variables to show the relationship between them.

Level of Significance

The probability of rejecting the null hypothesis in a statistical test when it is in fact true; commonly set thresholds include 0.05 or 0.01.

Null Hypothesis

The null hypothesis is a statement or hypothesis that there is no significant difference or effect, typically to be tested against an alternative hypothesis.