Which of the following statements is false?
A)An expense is a cost incurred to generate revenues.
B)Selling assets at a gain does not result in earning revenue.
C)Revenues are reported on the income statement as they are earned.
D)Revenues result in an increase in net income and additional paid-in capital.

Question

Quizplus · Accepted Answer

Revenues result in an increase in net income, but they do not result in additional paid-in capital. Paid-in capital refers to the money received from issuing stock to investors.

Which of the Following Statements Is False