A revenue transaction will result in all of the following except:
A)An increase in assets.
B)An increase in owners' 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 owners' equity, as well as a positive cash flow either currently or in the future. It does not, however, result in an increase in liabilities. If anything, it may decrease liabilities if the business is able to pay off debts or obligations using the revenue earned.

A Revenue Transaction Will Result in All of the Following