Revenues are:
A)decreases in assets resulting from delivering goods or services to customers.
B)increases in liabilities resulting from delivering goods or services to customers.
C)increases in retained earnings resulting from delivering goods or services to customers.
D)decreases in retained earnings resulting from delivering goods or services to customers.

Question

Quizplus · Accepted Answer

Revenues result in increases in retained earnings because they represent the income earned by a company from its business activities, such as delivering goods or services to customers. This increase in income directly impacts the equity section of the balance sheet by increasing retained earnings.

Revenues Are