All other accounts remaining the same,an increase in revenue will always:
A)increase Shareholders' equity.
B)increase assets.
C)decrease Shareholders' equity.
D)decrease assets.

Question

Quizplus · Accepted Answer

An increase in revenue means an increase in the income earned by the company. This results in an increase in the Retained Earnings component of Shareholders' Equity, ultimately leading to an increase in Shareholders' Equity as a whole. Therefore, an increase in revenue will always increase Shareholders' Equity.

All Other Accounts Remaining the Same,an Increase in Revenue Will