An increase in revenue always:
A)increases stockholders' equity.
B)increases assets.
C)decreases stockholders' equity.
D)decreases assets.

Question

Quizplus · Accepted Answer

Revenue is a subcategory of Retained Earnings,which is a stockholders' equity account.Net income increases Retained Earnings.Since net income equals the excess of revenues over expenses,eventually,revenues increase Retained Earnings.

An Increase in Revenue Always