Revenues Are

question 101

Multiple Choice

Revenues are:

• A)decreases in assets resulting from delivering goods or services to customers.
• B)increases in liabilities resulting from delivering goods or services to customers.
• C)increases in retained earnings resulting from delivering goods or services to customers.
• D)decreases in retained earnings resulting from delivering goods or services to customers.

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Definitions:

Double-Declining-Balance

An accelerated method of depreciation that doubles the standard depreciation rate, resulting in higher depreciation expenses in the earlier years of an asset's life.

Residual Value

The salvage value of an asset after its period of use has ended, reflecting its remaining worth.

Depreciation Method

A methodical strategy for distributing the expense of a physical asset across its lifespan.

Straight-Line

A method of allocating an asset's cost evenly over its useful life for purposes of depreciation.