Which of the Following Statements Is TRUE of Revenues

question 96

Multiple Choice

Which of the following statements is TRUE of revenues?

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

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Definitions:

Wage Rate

The amount of money paid per unit of time or per task for labor or services.

Demand for Labor

The employers' total demand for workers, influenced by wages, productivity, and economic conditions.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or input.

Formula

A symbolic expression that defines a rule or relationship in mathematics.