Which of the following will result in an increase in revenue?
A)Borrowing $10,000 from a bank
B)Stockholders investing $10,000 in a company
C)Selling concert tickets for $10,000 four months before the performance
D)Selling $10,000 of groceries to customers

Question

Quizplus · Accepted Answer

Revenues are increases in a company's resources created by providing goods or services to customers during the accounting period.Therefore,selling $10,000 of groceries results in an increase in revenue.When a company borrows money or stockholders invest in the company,the company is not providing goods or services so no revenue is recorded.The "sales" of concert tickets for a performance four months in advance is not revenue,but a liability since services (the concert)will be provided in the future.

Which of the Following Will Result in an Increase in Revenue