Revenues ________ Retained Earnings, and increase on the ________ side.
A)increase, debit
B)increase, credit
C)decrease, debit
D)decrease, credit

Question

Quizplus · Accepted Answer

Revenues increase Retained Earnings, which is an equity account. Since equity accounts have a credit balance, an increase in Retained Earnings would be recorded as a credit. Therefore, the revenue account would also be credited to reflect the increase in Retained Earnings.

Revenues ________ Retained Earnings, and Increase on the ________ Side

Revenues Retained Earnings, and Increase on the Side