Which account represents Revenue?

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Study for the Accounting CBE Exam. Gain insights with flashcards and multiple-choice questions, each paired with detailed explanations. Prepare for your accounting certification!

Multiple Choice

Which account represents Revenue?

Explanation:
Revenue is the income earned from providing goods or services to customers. In the chart of accounts, revenue accounts increase with credits and reflect the amount earned during a period. Fees Earned is a common name for a revenue account, so it directly represents the income from services rendered. Wages Expense is an expense and reduces net income; it decreases with a debit. Prepaid Rent is an asset, representing rent paid in advance and used over time. Cash is an asset, representing the money on hand or in the bank. None of these depict revenue.

Revenue is the income earned from providing goods or services to customers. In the chart of accounts, revenue accounts increase with credits and reflect the amount earned during a period. Fees Earned is a common name for a revenue account, so it directly represents the income from services rendered.

Wages Expense is an expense and reduces net income; it decreases with a debit. Prepaid Rent is an asset, representing rent paid in advance and used over time. Cash is an asset, representing the money on hand or in the bank. None of these depict revenue.

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