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Harvey Fisher
on Oct 28, 2024

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Revenue accounts have credit balances because they increase stockholders' equity.

Revenue Accounts

Accounts that record the income a company generates from its business activities.

Credit Balances

Balances within accounts that indicate the amount owed to a creditor; commonly found in liability and equity accounts.

Stockholders' Equity

Shareholders' equity in a corporation, defined by the excess of asset value over the amount of liabilities.

  • Differentiate assets from liabilities within accounting transactions.
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Ashawna StanleyOct 29, 2024
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