Which of the Following Transactions Will Not Result in an Increase

question 25

Multiple Choice

Which of the following transactions will not result in an increase in revenues?

• A)Sale of goods on credit.
• B)Sale of services for cash.
• C)Accumulation of interest in bank account.
• D)An investment into the business by the owner.

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Definitions:

Accounting Equation

The foundational formula in accounting, represented as Assets = Liabilities + Equity, underscoring the balance sheet structure.

Stockholders' Equity

The ownership interest of shareholders in the assets of a company, calculated as total assets minus total liabilities.

Net Income

The amount of profit a company generates after all expenses, taxes, and costs have been subtracted from its total revenue.

Cash Dividends

Dividends paid out in the form of cash from a corporation's earnings to its shareholders.