Increases in stockholders' equity that result from delivering goods or services to customers are:
A) assets.
B) revenues.
C) expenses.
D) liabilities.

Question

Quizplus · Accepted Answer

Increases in stockholders' equity that result from delivering goods or services to customers are revenues. They are recognized when the goods or services are delivered to the customer and are reported on the income statement. Assets are resources that are expected to provide future economic benefits, expenses are decreases in stockholders' equity that result from operating activities, and liabilities are present obligations of an entity to transfer assets or provide services to others in the future.

Increases in Stockholders' Equity That Result from Delivering Goods or Services