Which of the Following Transactions Results in an Increase in Revenues

question 104

Multiple Choice

Which of the following transactions results in an increase in revenues?

• A)Receipt of accounts receivable.
• B)Purchase of inventory.
• C)Receipt of principal from a bank loan.
• D)Delivery of a service in exchange for future payment.

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Definitions:

Expenses

Costs incurred in the process of earning revenue, including operational costs like rent, utilities, and payroll.

Withdrawals

Refers to the act of taking money out of a bank account or the removal of funds from a business by its owner for personal use.

Accounts Payable

The amount of money a company owes to its suppliers or vendors for goods or services received but not yet paid for.

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed, recognized as a liability on the balance sheet.