Asked by Jociee Anallam on Jun 22, 2024
Verified
Increases in equity from a company's sales of products or services are:
A) Assets.
B) Revenues.
C) Liabilities.
D) Stockholders' Equity.
E) Expenses.
Revenues
The total amount of money generated by the sale of goods, services, or other income for a company before any expenses are deducted.
Equity
The value of an asset after deducting the amount of all liabilities on that asset, representing an owner's interest in a company.
- Identify the principles of revenue and expense recognition and their impact on equity.
Verified Answer
NW
Nyanda Walker-PottsJun 29, 2024
Final Answer :
B
Explanation :
Increases in equity from a company's sales of products or services are revenues. Revenues are recognized when earned, which generally means when the product or service is delivered to the customer and the sale is complete.
Learning Objectives
- Identify the principles of revenue and expense recognition and their impact on equity.