Which of the Following Statements About Revenue Is CORRECT

question 161

Multiple Choice

Which of the following statements about revenue is CORRECT?

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

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Definitions:

Operating Activities

Business actions directly related to the production and delivery of goods and services, generating the majority of a company's cash flow.