Asked by Joselyne Saldaña Gonzalez on Jul 13, 2024
Verified
If a revenue account is credited, this must increase shareholders' equity.
Revenue Account
An account that tracks the income generated from normal business operations, such as sales of goods or services.
Credited
A bookkeeping record that augments liabilities or equity, or diminishes an asset or expense.
- Master the relationship between transactions and their impact on shareholder equity.
Verified Answer
MH
Michelle HansonJul 20, 2024
Final Answer :
True
Explanation :
When a revenue account is credited, it increases the total revenue, which in turn increases the net income and ultimately the shareholders' equity, as net income is a component of retained earnings, a part of shareholders' equity.
Learning Objectives
- Master the relationship between transactions and their impact on shareholder equity.
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