Generally, revenues (sales, fees earned) will increase a corporation's stockholders' equity and its assets.
More specifically, revenues will increase the retained earnings section of stockholders' equity. The assets that usually increase are cash or accounts receivable. However, it is possible that another asset would increase or that a liability would decrease.
Revenues are also reported as the top line on the income statement.
To learn more, see the Related Topics listed below:
After working as an accountant, consultant, and university accounting instructor for more
than 25 years, Harold Averkamp formed AccountingCoach.com in 2003. His goal was to
share his knowledge and passion for teaching accounting with people throughout the
world at a very low cost. Read More...