Question

Revenues normally carry a _______ balance and are shown in the ______________. Credit; Balance sheet Debit; Balance sheet Credit; Income statement Debit; Statement of stockholders' equity

Answer 1

Answer: Credit, income statement

       

Explanation: Revenues refers to the amount of income a business receives from its customers by performing their core activities.

Credit balance in an account depicts that the relative account is your property and someone owes you that balance. As noted earlier, revenue is the amount earned by the company and is owed by the customers , therefore, it has a credit balance.

Income statement refers to the statement that depicts the performance of the firm for the year and is used to ascertain profit. Revenue is recorded in the income statement so that after deducting the expenses, income could be ascertained.