Which of the following best describes operating revenues?
A) They are increases in assets or increases in liabilities as a result of peripheral transactions.
B) They are decreases in assets or decreases in liabilities as a result of ongoing operations.
C)They are increases in assets or decreases in liabilities as a result of ongoing operations.
D)They are decreases in assets or increases in liabilities as a result of peripheral transactions.

Question

Quizplus · Accepted Answer

Operating revenues are revenues that result from a company's ongoing operations, such as sales of goods or services. These revenues increase assets or decrease liabilities as a result of ongoing operations, making option C the correct choice. Options A and D describe peripheral transactions, which are not related to the company's primary operations. Option B describes decreases in assets or liabilities, which is not what operating revenues represent.

Which of the Following Best Describes Operating Revenues