Monday, December 26, 2011

In bookkeeping, why are revenues credits?

In bookkeeping, revenues are credits because revenues cause
owners equity or stockholders equity to increase. Recall that the
accounting equation, Assets = Liabilities + Owners Equity, must
always be in balance. The asset accounts are expected to have debit
balances, while the liability and owners equity accounts are
expected to have credit balances. Therefore, when

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