Which of the Following Statements Is True of Revenue

question 1

Multiple Choice

Which of the following statements is true of revenue?

• 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:

Sole Proprietorship

A business owned and operated by one person, where there is no legal distinction between the owner and the business entity.

Obligations

Duties or responsibilities enforced by law, contract, or moral principles.

Belong

refers to being part of, fitting in, or being rightly placed in a specific context or environment.

Specialized

Relating to a particular area of expertise or designed for a specific purpose or use.