Question

question 18 of 25
policies
current attempt in progress
revenues are
the cost of services used during the period.
increases in assets or decreases in liabilities resulting from selling goods or providing services.
the cost of assets consumed during the period.
actual or expected cash outflows.

Explanation:

To determine the correct definition of revenues, we analyze each option:

• The first option describes expenses (cost of services used), not revenues.
• The second option: Revenues arise from selling goods or services, which can increase assets (e.g., cash, accounts receivable) or decrease liabilities (e.g., unearned revenue), so this matches.
• The third option describes expenses (cost of assets consumed, like depreciation).
• The fourth option describes cash outflows (expenses or payments), not revenues (which are inflows or increases in net assets).

Answer:

B. increases in assets or decreases in liabilities resulting from selling goods or providing services.