A Revenue Transaction Results in All of the Following Except

question 127

Multiple Choice

A revenue transaction results in all of the following except:

• A) An increase in assets.
• B) An increase in owners' equity.
• C) A positive cash flow in either the past, present, or future.
• D) An increase in liabilities.

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Definitions:

Annuity Due

A series of equal payments made at the beginning of consecutive periods over a fixed length of time.

Discount Rate

The interest rate used to discount future cash flows to their present value, often reflecting the cost of capital or risk level.

Cash Flow Stream

A series of cash inflows and outflows over a period, representing transactions or operations' financial impacts on a business.

Compounded Annually

The process by which an investment grows in value over time as interest is added to the principal amount each year, which then earns more interest.