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:

Low-cost Production

Manufacturing or production processes optimized to minimize costs, often through economies of scale or efficient methods.

South Korea

A country in East Asia, known for its advanced technology and economy, bordered by North Korea to the north.

North Korea

A country in East Asia, known for its centralized government and unique political and economic structure.

Five Fundamental Questions

Economic questions addressing what to produce, how to produce, for whom to produce, when to produce, and where to produce, crucial for understanding resource allocation.