The Reason That Revenue Is Recorded by a Credit Entry

question 13

Multiple Choice

The reason that revenue is recorded by a credit entry to a revenue account is:

• A)That revenue always involves a debit to the Cash account.
• B)Explained by the realization principle.
• C)Explained by the matching principle.
• D)That revenue increases owners' equity.

---

Definitions:

Control Transformer

A transformer used to provide a stable voltage supply to control devices in electrical circuits, isolating them from the main power circuit.

Inrush Current

The amount of current that is drawn when an inductive device is first connected to the power line.

Magnetizing

Refers to the process of inducing magnetic properties in a material, usually by placing it within a magnetic field or by passing an electric current through it.

Excitation

The process of supplying electrical current to the field windings of a motor or generator, stimulating it to generate a magnetic field or to operate.