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:

Firms

Business entities that engage in commercial, industrial, or professional activities, often distinguished by their legal structure and objectives.

Cutthroat Competitor

A business or firm that aggressively competes in the market, often through pricing strategies, innovation, or marketing, to capture a significant share from rivals.

Lower

To decrease in position, value, or amount.

Price

The amount of money required to purchase a good, service, or asset. It acts as a signal to both buyers and sellers in a market.