A revenue transaction results in all of the following except:
A) An increase in assets.
B) An increase in equity.
C) A positive cash flow in either the past, present, or future.
D) An increase in liabilities.

Question

Quizplus · Accepted Answer

A revenue transaction typically results in an increase in assets and equity, and in some cases, a positive cash flow in the past, present, or future. However, it does not lead to an increase in liabilities. In fact, revenue transactions often result in a decrease in liabilities as obligations and debts are paid off using revenue generated from sales or services provided.

A Revenue Transaction Results in All of the Following Except